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28 September 2020
Acting U.S. Attorney Announces Charges Against Correctional Officer Who Demanded Bribe in the Form of Sex from A Female Prison VisitorRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of an Indictment charging ROBERT ADAMS with bribery and blackmail. ADAMS was arrested this morning and is expected to be presented before U.S. Magistrate Judge Robert W. Lehrburger. The case is assigned to U.S. District Judge Paul G. Gardephe.
Acting U.S. Attorney Audrey Strauss said: “As alleged, Robert Adams was derelict in his duties as an MCC correctional officer, not only by turning a blind eye to the smuggling of contraband, thereby putting inmates and fellow officers at risk, but also by exploiting his position of authority to pressure a prison visitor into having unwanted sex with him. Now Adams, a sworn law enforcement officer, is facing prosecution for these alleged serious violations of the law.”
FBI Assistant Director William F. Sweeney Jr. said: “Correctional officers are supposed to serve as society’s guardians – protecting us all from some of the worst offenders while they complete their sentences, not making offenders’ lives more comfortable by breaking rules, and certainly not engaging in their own extortionate behavior while doing so. We allege Adams did just that – he allowed illegal contraband into the MCC, risked the overall security of the facility and safety of his co-workers, and even more egregiously, he used his position of authority to blackmail a victim to have sex. Today we want to remind those who guard federal facilities the consequences for illegal behavior are just as severe for sworn officers as they are for anyone else in society.”
According to the allegations contained in the Indictment unsealed today in Manhattan federal court:[1]
ADAMS is a correctional officer employed by the United States Bureau of Prisons (“BOP”) at the Metropolitan Correctional Center (“MCC”), a federal prison located in New York, New York. Between June 2019 to August 2019, ADAMS was, among other responsibilities, assigned to work in the visit area of the MCC. Among his official responsibilities in that capacity, ADAMS was required to conduct searches, deny entry, detain visitors, and make reports when, among other things, he believed a visitor was smuggling contraband into the MCC.
ADAMS abused his official position as a correctional officer by blackmailing and corruptly demanding that a visitor, whom he had caught smuggling contraband into the MCC (“Visitor-1”), engage in sexual acts with him, or else be arrested and denied future entry to the MCC. Specifically, on or about July 5, 2019, while working as a correctional officer in the MCC’s visit area, ADAMS escorted an inmate away from a visit with Visitor-1, who was still in the visit area. After discovering that the inmate was carrying contraband, ADAMS confronted Visitor-1 and told her that he had caught the inmate with contraband she had provided to him. ADAMS further told Visitor-1 that she would be in trouble unless she met him at a nearby pizzeria.
As instructed by ADAMS, Visitor-1 left the MCC – without being reported or arrested for smuggling contraband – and walked to the nearby pizzeria. Soon thereafter, ADAMS met Visitor-1 at the pizzeria, where he requested that Vistor-1 get in his car and travel with him to a motel to have sex. ADAMS conveyed to Visitor-1that unless she had sex with him, she would be prohibited from visiting the MCC and would be arrested. After arriving at the motel, ADAMS and Visitor-1 had sex. Visitor-1 did not want to have sex with ADAMS, but agreed to it in exchange for not being reported to law enforcement or having her visiting privileges at the MCC revoked.
After the July 5, 2019, incident, Visitor-1 was permitted to continue to visit the MCC. Not only did ADAMS not report Visitor-1 on July 5, 2019, for smuggling contraband, in dereliction of his official duties, but he was also present on other occasions where she returned to the MCC with contraband.
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ADAMS, 39, of New York, New York, is charged with one count of bribery, which carries a maximum penalty of 15 years in prison, and one count of blackmail, which carries a maximum penalty of one year in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
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Ms. Strauss praised the outstanding investigative work of the FBI. She also thanked the Department of Justice’s Office of the Inspector General for its assistance in this matter.
The prosecution of this case is being handled by the Office’s Public Corruption Unit. Assistant United States Attorneys Nicolas Roos and Rushmi Bhaskaran are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the descriptions set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
10 Defendants Arrested on Federal Drug Conspiracy and Firearms Charges out of Chesterfield CountyRead the Press Release
Florence, South Carolina --- United States Attorney Peter M. McCoy, Jr., announced today that a joint team of federal, state, and local law enforcement officers arrested 10 individuals who have all been charged in federal court for their roles in a conspiracy to distribute and possess with intent to distribute methamphetamine.
“Methamphetamine trafficking operations like this are a danger to our communities,” said U.S. Attorney McCoy. “In spite of the challenges faced during the pandemic, federal, state, and local law enforcement partners continue to diligently work together to make our communities safe by targeting drug trafficking operations. I commend the excellent work of all law enforcement who took part in this case. Our hard-working law enforcement partners make cases like this possible.”
“Investigations like these should remind criminals in Chesterfield County, and elsewhere, who flood the drug market with methamphetamine that DEA and its law enforcement partners will ultimately destroy their meth-trafficking activities,” said Robert J. Murphy, Special Agent in Charge of the Drug Enforcement Administration (DEA) Atlanta Field Division.
“The sale of illicit drugs is a continuous problem in Chesterfield County,” said James Dixon, Chesterfield County Sheriff. “The arrest of these 10 defendants is a positive effort in diminishing drug dealing in Chesterfield County. I would like to thank all the listed agencies for their hours of work expended to arrest and prosecute these defendants.”
The following defendants have been arrested and arraigned on an indictment for charges related to their alleged roles in the drug conspiracy:
Michael Gary Pruitt, a/k/a “White Mike,” 30, of Kershaw, is charged in the conspiracy with 500 grams or more of methamphetamine. This charge carries a potential penalty of 10 years to Life imprisonment. He is also charged with two counts of possessing a firearm in furtherance of a drug trafficking crime, each of which carries a potential penalty of at least five years, consecutive to any other penalty imposed.
Brian Thomas Huey, 47, of Mount Croghan, is charged in the conspiracy with 500 grams or more of methamphetamine. This charge carries a potential penalty of 10 years to Life imprisonment.
Matthew Sidney McIntyre, 31, of Jefferson, is charged in the conspiracy with 500 grams or more of methamphetamine. This charge carries a potential penalty of 10 years to Life imprisonment.
Christopher Kent McClain, 49, of Jefferson, is charged in the conspiracy with 500 grams or more of methamphetamine. This charge carries a potential penalty of 10 years to Life imprisonment.
Christopher Jacob McClain, a/k/a “White Boy,” 29, of Pageland, is charged in the conspiracy with 500 grams or more of methamphetamine. This charge carries a potential penalty of 10 years to Life imprisonment.
Franklin Lee Laney, Jr., a/k/a “Pops,” 42, of Jefferson, is charged in the conspiracy with 500 grams or more of methamphetamine. This charge carries a potential penalty of 10 years to Life imprisonment.
Ridge Steven Oliver, a/k/a “Stevie,” 55, of Ruby, is charged in the conspiracy with 500 grams or more of methamphetamine. This charge carries a potential penalty of 10 years to Life imprisonment.
Jonathan Ray Gordon, a/k/a “Jon G,” 37, of Jefferson, is charged in the conspiracy with 500 grams or more of methamphetamine. This charge carries a potential penalty of 10 years to Life imprisonment.
William Chester Miles, a/k/a “Bug,” 31, of Lancaster, is charged in the conspiracy with 50 grams or more of methamphetamine. This charge carries a potential penalty of 5 to 40 years imprisonment.
Sheila Ann Hicks, 47, of Pageland, is charged in the conspiracy with 50 grams or more of methamphetamine. This charge carries a potential penalty of 5 to 40 years imprisonment.
The case was investigated by the DEA, Federal Bureau of Investigation (FBI), Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Chesterfield County Sheriff’s Office, Cheraw Police Department, Darlington County Sheriff’s Office, Hartsville Police Department, Florence County Sheriff’s Office, Florence Police Department, and Williamsburg County Sheriff’s Office.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Assistant United States Attorneys Lauren Hummel and Everett McMillian are prosecuting the case.
The United States Attorney stated that all charges against these defendants are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
27 September 2020
White Horse Man Sentenced for AssaultRead the Press Release
United States Attorney Ron Parsons announced that a White Horse, South Dakota, man convicted of Assault Resulting in Serious Bodily Injury was sentenced on September 21, 2020, by Chief Judge Roberto A. Lange, U.S. District Court.
Kip Blue Coat, age 29, was sentenced to 28 months in federal prison, followed by 3 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Blue Coat was indicted by a federal grand jury on February 11, 2020. He pled guilty on June 29, 2020.
The conviction stemmed from an incident on October 26, 2019, in Eagle Butte, when Blue Coat assaulted an individual who was sleeping by repeatedly punching him in the face. The assault caused serious injury to the victim and surgery was required.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller prosecuted the case.
Blue Coat was immediately turned over to the custody of the U.S. Marshals Service.
Rapid City Man Indicted for Assault and Commission of a Crime of Violence While Failing to Register as Sex OffenderRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man has been indicted by a federal grand jury for Assault With a Dangerous Weapon, Assault Resulting in Serious Bodily Injury, Failure to Register as a Sex Offender, and Commission of a Crime of Violence While Failing to Register as a Sex Offender.
Patrick Luke Black Spotted Horse, age 31, was indicted on August 11, 2020. He appeared before U.S. Magistrate Judge Mark A. Moreno on September 23, 2020, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 30 years in federal prison and/or a $250,000 fine, 5 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on June 14, 2020, in Mellette County, South Dakota, Black Spotted Horse assaulted an individual with a sharp-edged instrument with the intent to do bodily harm and that the assault resulted in serious bodily injury. Black Spotted Horse is alleged to have committed the assault while having failed to Register as a Sex Offender. Black Spotted Horse was convicted of Sexual Abuse of a Minor in March 2010. As a result of this conviction, he is required to register as a sex offender. The Indictment further alleges that between May 1, 2020, and June 14, 2020, and again between June 19, 2020, and August 11, 2020, Black Spotted Horse, a person required to register under the Sex Offender Registration and Notification Act, and a sex offender by reason of conviction under Federal Law, failed to properly register as a sex offender and update his registration.
The charges are merely accusations and Black Spotted Horse is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services and the U.S. Marshals Service. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Black Spotted Horse was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
New Jersey Man Pleads Guilty to Traveling to Albany Area to Have Sex with Thirteen-Year-Old GirlRead the Press Release
ALBANY, NEW YORK – Recep Sandikci, age 46, of North Plainfield, New Jersey, pled guilty on Friday to traveling to New York to have sex with a child, and sending that child sexually explicit photos over the internet.
The announcement was made by Acting United States Attorney Antoinette T. Bacon and Thomas F. Relford, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
As part of his guilty plea, Sandikci admitted to driving from New Jersey to New York on August 6, 2019, in order to meet and have sex with a 13-year-old Albany-area girl. During communications between the defendant and the girl over a cellphone application in the days leading up to the arrest, the defendant sent the girl sexually explicit images. Sandikci was arrested by the FBI shortly after his arrival in New York, and prior to meeting the girl.
United States District Judge Mae D. Agostino will sentence Sandikci on January 25, 2021. He faces up to 30 years in prison, a fine of up to $250,000, and a term of supervised release of at least 5 years and up to life.
A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by the FBI and its Child Exploitation Task Force, and is being prosecuted by Assistant U.S. Attorney Emily C. Powers.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc
Mission Man Indicted for Failure to Register as Sex OffenderRead the Press Release
United States Attorney Ron Parsons announced that a Mission, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Scirgio Iron Shell, age 28, was indicted on August 11, 2020. He appeared before U.S. Magistrate Judge Mark A. Moreno on September 23, 2020, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, 5 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
Iron Shell was convicted of Attempted Possession of Child Pornography in June 2017. As a result of the conviction, he is required to register as a sex offender. The Indictment alleges between September 10, 2019, and August 11, 2020, Iron Shell, a person required to register under the Sex Offender Registration and Notification Act, and a sex offender by reason of conviction under Federal Law, failed to properly register as a sex offender and update his registration.
The charge is merely an accusation and Iron Shell is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Michael J. Elmore is prosecuting the case.
Iron Shell was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Mission Man Indicted for Burglary and Theft of Government PropertyRead the Press Release
United States Attorney Ron Parsons announced that a Mission, South Dakota, man has been indicted by a federal grand jury for Third Degree Burglary and Theft of Government Property.
Preston White Feather, age 24, was indicted on August 11, 2020. He appeared before U.S. Magistrate Judge Mark A. Moreno on September 23, 2020, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on multiple dates between April 8, 2020, and April 21, 2020, White Feather unlawfully entered multiple businesses and Government buildings in Mission, South Dakota, with the intent to commit the crime of larceny therein. The Indictment further alleges that on one of the occasions, the Defendant stole a pickup truck, the property of the United States.
The charges are merely accusations and White Feather is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
White Feather was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Minnesota Man Indicted on Firearm ChargeRead the Press Release
United States Attorney Ron Parsons announced that a Sauk Rapids, Minnesota, man has been indicted by a federal grand jury for Possession of a Firearm by a Prohibited Person.
Ron Carlos Carter, age 43, was indicted on September 9, 2020. He appeared before U.S. Magistrate Judge William D. Gerdes on September 22, 2020, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on April 9, 2020, Carter, then being an unlawful user of a controlled substance, and knowing he was an unlawful user of a controlled substance, knowingly possessed a firearm, which had been shipped and transported in interstate commerce and foreign commerce, on the Standing Rock Sioux Reservation.
The charge is merely an accusation and Carter is presumed innocent until and unless proven guilty.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
The investigation is being conducted by the Northern Plains Safe Trails Drug Enforcement Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Bureau of Indian Affairs, Standing Rock Agency, and the Mobridge Police Department. Assistant U.S. Attorney Cameron J. Cook is prosecuting the case.
Carter was released on bond pending trial. A trial date has not been set.
Fort Thompson Man Sentenced for ManslaughterRead the Press Release
United States Attorney Ron Parsons announced that a Fort Thompson, South Dakota, man convicted of Involuntary Manslaughter was sentenced on September 21, 2020, by Chief Judge Roberto A. Lange, U.S. District Court.
Antoine Medicine Crow, Jr., age 38, was sentenced to 30 months in federal prison, followed by 3 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Medicine Crow was indicted by a federal grand jury on August 13, 2019. He pled guilty on June 29, 2020.
The conviction stemmed from an incident on April 26, 2019, in Buffalo County, on the Crow Creek Reservation, when Medicine Crow operated a motor vehicle while under the influence of alcohol. Medicine Crow attempted to pass another vehicle, at a high rate of speed, and lost control of the car. The vehicle careened into the ditch and rolled over multiple times. Medicine Crow and another individual were both ejected from the car, with the ejected passenger ultimately dying from her injuries.
This case was investigated by the Federal Bureau of Investigation and the Bureau of Indian Affairs, Crow Creek Agency. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Medicine Crow was immediately turned over to the custody of the U.S. Marshals Service.
Feds Charge Armed Felon Threatening Louisville PoliceRead the Press Release
LOUISVILLE, Ky. – A Louisville, Kentucky, man, who allegedly threatened police in a social media video while brandishing weapons has been charged federally, announced U.S. Attorney Russell Coleman. The resulting investigation and arrest will help keep police safe, and shows all levels of law enforcement working in coordination to take an armed felon who was threatening officers off of the streets.
"Louisville needs healing and safety for its citizens, not armed felons seeking bids to shoot police," said U.S. Attorney Russell Coleman. "Federal law enforcement here will continue to respond as one to swiftly mitigate threats to our city."
“Threats against law enforcement are unacceptable”, stated Special Agent in Charge R. Shawn Morrow of the Louisville Field Division of ATF. “When you threaten police and brandish firearms, you can expect the attention of ATF. This morning ATF agents, with the immediate assistance of LMPD, HSI, U.S. Marshal’s, and the FBI, executed a warrant and arrested an armed felon ensuring he wouldn’t carry out those threats.”
Cortez Lamont Edwards, 29, of Louisville, Kentucky, has been charged with being a felon in possession of a firearm.
According to the criminal complaint, on September 23, 2020, Edwards went live on Facebook in possession of an AR variant pistol including a non-extendible support brace with an extended magazine. In the video Edwards states he is requesting being paid $30,000.00 to shoot Louisville Metro Police Department (LMPD) officers on scene for a disturbance in the street in front of his residence. An investigation revealed that Edwards is a convicted felon based on a felony conviction in case number 19-CR-001861 from Jefferson Circuit Court, Jefferson County, Kentucky for Complicity to Trafficking in a Controlled Substance and Possession of a Firearm by a Convicted Felon.
On September 27, 2020, Special Agents from the ATF, Homeland Security Investigations (HSI), United States Marshal Service, Federal Protective Service and officers and detectives from the Louisville Metro Police Department executed a search warrant at Edwards’ residence without incident. The defendant was located laying on a couch in the living room of his residence. A Glock model 19, 9-millimeter semi-automatic pistol, bearing serial number BPHA723, was located on the couch where Edwards was sleeping at the time of entry into the residence. At the time of entry into the living room, Edwards was the only adult present in that room and there a toddler present in a playpen.
If convicted at trial, the maximum sentence for unlawfully possessing a firearm is no more than ten years in prison, a $250,000 fine, and three years of supervised release.
A federal complaint is a written statement of the essential facts of the offense charged and must be made under oath before a United States Magistrate Judge. The charge set forth in a complaint is merely an accusation and the defendant is presumed innocent until proven guilty.
The case is being investigated by Bureau of Alcohol Tobacco Firearms and Explosives, Louisville Metro Police Department, Homeland Security Investigations (HSI), U.S. Marshals Service, and United States Secret Service.
Eagle Butte Man Sentenced on Multiple ChargesRead the Press Release
United States Attorney Ron Parsons announced that an Eagle Butte, South Dakota, man convicted of Abusive Sexual Contact of a Child and Failure to Appear was sentenced on September 21, 2020, by Chief Judge Roberto A. Lange, U.S. District Court.
Theodore Taylor, Jr. a/k/a “Tedder”, age 35, was sentenced to 11 years and 6 months in federal prison, followed by 5 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $200.
Taylor was indicted by a federal grand jury for the Abusive Sexual Contact of a Child on May 14, 2019, and on October 16, 2019, for the Failure to Appear. He pled guilty to both charges on July 7, 2020.
The Abusive Sexual Contact of a Child conviction stemmed from multiple incidents between 2013 and 2016, on the Cheyenne River Reservation, when Taylor knowingly engaged in and attempted to engage in sexual contact with a child who had not attainted the age of 12 years.
The Failure to Appear conviction stemmed from August 17, 2019, when Taylor was ordered to report to the custody of the U.S. Marshals Service for violating the terms and conditions of his release on bond, and knowingly failed to do so.
This case was investigated by the U.S. Marshals Service, the Federal Bureau of Investigation, and the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller prosecuted the case.
Taylor was immediately turned over to the custody of the U.S. Marshals Service.
Eagle Butte Man Convicted by Federal Jury of Methamphetamine TraffickingRead the Press Release
United States Attorney Ron Parsons announced that Daniel Gray Eagle, age 39, of Eagle Butte, South Dakota, was found guilty of Conspiracy to Distribute a Controlled Substance and Possession of a Controlled Substance with Intent to Distribute as a result of a three-day federal jury trial in Pierre, South Dakota.
The convictions carry a maximum sentence of at least 10 years up to life in federal prison, and/or a $10,000,000 fine, a lifetime of supervised release, and a $300 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
Gray Eagle was indicted by a federal grand jury on December 10, 2019, and a superseding indictment was filed on July 16, 2020.
The jury found that between January 1, 2017, and February 7, 2020, Gray Eagle knowingly and intentionally conspired with others to distribute and possess with the intent to distribute over 500 grams of methamphetamine in South Dakota. Gray Eagle routinely traveled to Rapid City, South Dakota, to acquire methamphetamine, which he primarily distributed in Eagle Butte.
The jury also found Gray Eagle guilty of two counts of Possession of a Controlled Substance with Intent to Distribute. The first count arose from a high-speed car chase with law enforcement in the southwest corner of the Cheyenne River Sioux Indian Reservation on January 22, 2018. During the chase, Gray Eagle instructed a passenger to throw a pill bottle containing 22 grams of methamphetamine out of the car. The methamphetamine was recovered, and Gray Eagle was taken into custody after crashing the car in a field. The second count arose from a foot pursuit and arrest of Gray Eagle on March 1, 2018, in Eagle Butte. After Gray Eagle was arrested on a tribal warrant, a search of his person revealed three baggies containing a small amount of methamphetamine in his pants pocket, as well as a cell phone containing drug-related messages.
This case was investigated by the Northern Plains Safe Trails Drug Enforcement Task Force, Cheyenne River Sioux Tribe Law Enforcement Services, Rapid City Police Department, South Dakota Division of Criminal Investigation, City of Faith Police Department, Drug Enforcement Administration, Bureau of Indian Affairs, Division of Drug Enforcement, and the South Dakota National Guard. Assistant U.S. Attorney Cameron J. Cook prosecuted the case.
A sentencing date was set for December 14, 2020. Gray Eagle was immediately remanded to the custody of the U.S. Marshals Service.
26 September 2020
Grand Jury - September 2020Read the Press Release
United States Attorney Joe Kelly announced the federal Grand Jury for the District of Nebraska has returned 10 unsealed Indictments charging 10 defendants. Indictments are charging documents that contain one or more individual counts that are merely accusations, and every defendant is presumed innocent unless and until proven guilty.
* Lindsey L. Bixby, age 42, of Ellsworth, Nebraska, is charged with deprivation of rights under color of law beginning on or about March 4, 2016. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment.
* Larry Brye, age 28, of Omaha, is charged in a twelve-count Indictment. Count I charges the defendant with distribution of fentanyl on May 4, 2020. The maximum possible penalty if convicted is 20 years’ imprisonment, $1,000,000 fine, life term of supervised release, and a $100 special assessment. Count II charges the defendant with distribution of fentanyl on May 8, 2020. The maximum possible penalty if convicted is 20 years’ imprisonment, $1,000,000 fine, life term of supervised release, and a $100 special assessment. Count III charges the defendant with distribution of marijuana on May 8, 2020. The maximum possible penalty if convicted is 5 years’ imprisonment, $250,000 fine, life term of supervised release, and a $100 special assessment. Count IV charges the defendant with distribution of fentanyl on May13, 2020. The maximum possible penalty if convicted is 20 years’ imprisonment, $1,000,000 fine, life term of supervised release, and a $100 special assessment. Count V charges the defendant with distribution of marijuana on May 13, 2020. The maximum possible penalty if convicted is 5 years’ imprisonment, $250,000 fine, life term of supervised release, and a $100 special assessment. Count VI charges the defendant with distribution of methamphetamine on June 30, 2020. The maximum possible penalty if convicted is 20 years’ imprisonment, $1,000,000 fine, life term of supervised release, and a $100 special assessment. Count VII charges the defendant with distribution of methamphetamine on August 11, 2020. The maximum possible penalty if convicted is 20 years’ imprisonment, $1,000,000 fine, life term of supervised release, and a $100 special assessment. Count VIII charges the defendant with felon in possession of a firearm on August 19, 2020. The maximum possible penalty if convicted is 10 years’ imprisonment, $250,000 fine, three-year term of supervised release, and a $100 special assessment. Count IX charges the defendant with possession with intent to deliver a mixture containing heroin, a mixture containing cocaine, a mixture containing fentanyl, and a mixture containing hydrocodone on August 19, 2020. The maximum possible penalty if convicted is 20 years’ imprisonment, $1,000,000 fine, life term of supervised release, and a $100 special assessment. Count X charges the defendant with possession with intent to deliver a mixture containing marijuana, on August 19, 2020. The maximum possible penalty if convicted is 5 years’ imprisonment, $250,000 fine, life term of supervised release, and a $100 special assessment. Count XI charges the defendant with possession with intent to deliver a mixture containing alprazolam and tramadol, on August 19, 2020. The maximum possible penalty if convicted is 5 years’ imprisonment, $250,000 fine, life term of supervised release, and a $100 special assessment. Count XII charges the defendant with possession of a firearm in furtherance of a drug trafficking crime, on August 19, 2020. The maximum possible penalty if convicted is life imprisonment consecutive to other counts, $250,000 fine, five-year term of supervised release, and a $100 special assessment.
* Miguel Escobar Garcia, age 39, is charged with illegal reentry after deportation on or about September 10, 2020. The maximum possible penalty if convicted is 2 years’ imprisonment, a $250,000 fine, a one-year term of supervised release, and a $100 special assessment.
* Jacob Fay, age 35, of Omaha, is charged in a three-count Indictment. Count I charges the defendant with a felon in possession of a firearm on or about January 16, 2020. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment. Count II charges the defendant with possession with intent to distribute methamphetamine (mixture) on January 16, 2020. The maximum possible penalty if convicted is 20 years’ imprisonment, $1,000,000 fine, three-year term of supervised release, and a $100 special assessment. Count III charges the defendant with using or possessing a firearm during a drug trafficking crime on or about January 16, 2020. The maximum possible penalty if convicted is life imprisonment consecutive, a $250,000 fine, a five-year term of supervised release, and a $100 special assessment.
* Joseph B. Levering, age 40, of Winnebago, Nebraska, is charged with domestic assault by a habitual offender beginning on or about September 16, 2020. The maximum possible penalty if convicted is 5 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment.
* Miguel Lucas-Bernabe, age 53, is charged with illegal reentry after deportation on or about August 27, 2020. The maximum possible penalty if convicted is 2 years’ imprisonment, a $250,000 fine, a one-year term of supervised release, and a $100 special assessment.
* Stacey Overly, age 52, is charged in a seven-count Indictment. Counts I – V charge the defendant with wire fraud beginning on or about April 3, 2012 and continuing through April 3, 2016. The maximum possible penalty if convicted is 20 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment for each count. Count VI charges the defendant with conversion of SSI benefits by a representative payee, beginning on or about December 1, 2014, and continuing to on or about May 3, 2016. The maximum possible penalty if convicted is 5 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment. Count VII charges the defendant with theft of government funds, beginning on or about December 1, 2014, and continuing to on or about May 3, 2016. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment
* Dajuan Parker, age 22, of Macy, Nebraska, is charged in a two-count Indictment. Count I charges the defendant with burglary in Indian Country on August 19, 2020. The maximum possible penalty if convicted is 20 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment. Count II charges the defendant with child abuse in Indian Country on August 19, 2020. The maximum possible penalty if convicted is 3 years’ imprisonment, a $250,000 fine, an eighteen-month term of supervised release, and a $100 special assessment.
* Victor Tyndall, age 30, of Macy, Nebraska, is charged in a two-count Indictment. Count I charges the defendant with strangulation on June 30, 2020. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment. Count II charges the defendant with domestic assault resulting in substantial bodily injury on June 30, 2020. The maximum possible penalty if convicted is 5 years’ imprisonment, a $250,000 fine, an eighteen-month term of supervised release, and a $100 special assessment.
* Jordan R. Whipple, age 26, of Niobrara, Nebraska, is charged with involuntary manslaughter in Indian Country beginning on or about August 16, 2020. The maximum possible penalty if convicted is 6 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment.
Gang Member Sentenced to Serve More Than Sixteen Years in Federal Prison for CarjackingRead the Press Release
OKLAHOMA CITY – TREVOR KANE TAYLOR, 31, of Oklahoma City, has been sentenced to serve more than 16 years in federal prison for carjacking, announced Timothy J. Downing, United States Attorney for the Western District of Oklahoma.
A Superseding Information filed on March 4, 2020, charged Taylor with one count of conspiracy to commit carjacking and one count of carjacking. On March 5, 2020, Taylor pleaded guilty to both counts of the Superseding Information.
According to evidence presented at a sentencing hearing earlier this week, on October 28, 2019, Taylor and another individual carjacked a vehicle at gunpoint in Tuttle, Oklahoma. Senior United States District Judge Stephen P. Friot then sentenced Taylor to 60 months’ imprisonment on Count 1 and 140 months’ imprisonment on Count 2, with the prison terms to run consecutively. These consecutive terms resulted in a total sentence of 200 months’ imprisonment. Judge Friot also sentenced Taylor to serve three years of supervised release following his term of imprisonment. In imposing Taylor’s sentence, Judge Friot noted Taylor’s character and lengthy criminal history. Public records reflect that Taylor holds multiple felony convictions, including those for possession of a taken credit card, knowingly concealing stolen property, and possession of a controlled substance.
These charges are the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Tuttle Police Department, and the Chickasha Police Department. The case was prosecuted by Assistant U.S. Attorney Edward J. Kumiega.
Reference is made to court filings for further information. To download a photo of U.S. Attorney Downing, click here.
25 September 2020
West Springfield Man Pleads Guilty to Child Pornography ChargesRead the Press Release
BOSTON – A West Springfield man pleaded guilty yesterday in federal court in Springfield to child pornography charges.
Luke Gagnon, 34, pleaded guilty to one count of distributing child pornography and one count of possession of child pornography. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for Jan. 22, 2021. Gagnon was arrested and charged in January 2020.
From September 2019 to January 2020, Gagnon distributed child pornography. In addition, a hard-drive from a desktop computer belonging to Gagnon contained several videos and images of child pornography.
The charge of distribution of child pornography provides for a mandatory minimum sentence of five years and up to 20 years in prison and the charge of possession of child pornography provides for a sentence of up to 20 years in prison because the offense involved prepubescent minors. Both offenses provide for at least five years and up to life of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Frederick J. Regan, Special Agent in Charge of the U.S. Secret Service, Boston Field Office; West Springfield Police Chief Paul Connor; and South Hadley Police Chief Jennifer Gundersen made the announcement today. Assistant U.S. Attorney Michelle L. Dineen Jerrett from Lelling’s Springfield Branch Office is prosecuting the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Vermont Man Accused of Repeatedly Assaulting Police Officers During Civil Disorder in PortlandRead the Press Release
PORTLAND, Ore.—U.S. Attorney Billy J. Williams announced today that a White River Junction, Vermont man has been charged with repeatedly charging at police officers while holding a shield as officers were engaged in lawful crowd dispersal during a civil disorder event.
A federal grand jury in Portland, Oregon has returned a one-count indictment charging Charles Randolph Comfort, 24 with Civil Disorder.
According to court documents, during the late evening of June 25, 2020, a group of individuals blocked traffic on NE Martin Luther King Jr. Boulevard and NE Emerson near Portland Police Bureau’s (PPB) North Precinct. Dumpsters were taken by members of the crowd from nearby businesses and rolled into the streets and fireworks were thrown over the barricade on NE Emerson Street at the officers stationed there. An unlawful assembly was declared in the early morning hours of June 26, 2020 and PPB made repeated public address announcements telling the group to leave the area.
A PPB Rapid Response Team officer was assisting with moving the crowd that was in the middle of NE MLK Blvd and observed Charles Randolph Comfort carrying a black shield which he repeatedly used as he charged at officers as they were attempting to disperse the crowd. Upon refusing to leave the area, Comfort was placed under arrest where he actively attempted to pull away and kicked a PPB officer multiple times.
Charles Randolph Comfort made his initial appearance in federal court today before U.S. Magistrate Judge Youlee Yim You. He was arraigned, pleaded not guilty, and ordered released pending a jury trial.
The FBI and PPB investigated this case. It is being prosecuted by an Assistant U.S. Attorney for the District of Oregon. An indictment is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
United States Files Complaint Against Nutter Home Loans for Forging Certifications and Using Unqualified Underwriters to Approve Government-Insured Reverse MortgagesRead the Press Release
The United States has filed a complaint under the Financial Institutions Reform, Recovery and Enforcement Act of 1989 and the False Claims Act against Nutter Home Loans, f/k/a James B. Nutter & Co. (Nutter), for forging certifications and using unqualified underwriters to approve Federal Housing Administration (FHA) insured Home Equity Conversion Mortgages (HECM), the Department of Justice announced today.
“The HECM program benefits America’s seniors and our communities,” said Acting Assistant Attorney General Jeffrey Bossert Clark of the Department of Justice’s Civil Division. “The Department is committed to holding accountable those who violate the bedrock requirements of this important program.”
“Companies participating in federal programs must operate with honor and integrity,” said Acting U.S Attorney Michael R. Sherwin for the District of Columbia. “This complaint sends a clear message that we will not tolerate fraud against programs designed to financially help our nation’s seniors.”
“Lenders who willfully disregard FHA requirements for HECM loans expose the program to significant financial losses that threaten the future availability of this important program to seniors,” said Rae Oliver Davis, Inspector General, U.S. Department of Housing and Urban Development. “This complaint is evidence that we will tirelessly investigate allegations of abuses of the HECM program by FHA lenders.”
The FHA, part of the U.S. Department of Housing and Urban Development (HUD), offers numerous mortgage insurance programs intended to help build and sustain strong communities across America. The HECM program is a reverse mortgage program specifically for senior homeowners age 62 and older. The program allows seniors to access the equity in their residences, and thereby age in place in their family home, through a mortgage agreement with a lender that is insured against loss by the FHA. The United States’ complaint alleges that in order to significantly increase its loan production, Nutter used unqualified underwriters lacking the requirements established by HUD to review and approve HECMs that Nutter ultimately insured with the FHA. Moreover, on other loans, Nutter forged the signatures of qualified underwriters to make it appear that a qualified underwriter had reviewed and approved the loan.
This matter was investigated by the Commercial Litigation Branch of the Department of Justice’s Civil Division, the U.S. Attorney’s Office for the District of Columbia, HUD, and HUD’s Office of Inspector General. The claims asserted against the defendant are allegations only, and there has been no determination of liability.
United States Attorney Statement Regarding Ongoing Violence in PortlandRead the Press Release
PORTLAND, Ore.— Billy J. Williams, U.S. Attorney for the District of Oregon, provides the below statement on ongoing violence in Portland:
“This nation’s most successful movement for racial equality and justice was led by a man dedicated to non-violent principles. Dr. Martin Luther King, Jr. believed in nonviolence, winning his opponents’ friendship and understanding without humiliation, and he held a deep faith in the future. His aspirations for racial justice unquestionably remain unfinished, but his philosophy on how to achieve it remains just as relevant today.
George Floyd’s death has forced law enforcement and the justice system to closely examine our work and has led our society to ask critical questions. For more than 100 consecutive nights, Portland has been the center of large demonstrations and protests. Peaceful protests, public dialogue, and ongoing legislative and policy reviews at every level are essential to identifying solutions and bringing about meaningful and positive changes. Civility and respect are key elements to this process.
By contrast, there has been nothing civil, respectful, or positive about the nightly violent and destructive protests in Portland, Oregon. On many nights, after peaceful demonstrations end, violent agitators have physically attacked police officers and firefighters, damaged buildings, and repeatedly attempted to set public buildings on fire. These agitators include not just local residents but people who have travelled from out of state.
On several occasions in August, demonstrations were held during the day where groups with opposing ideologies clashed and engaged in physical violence against one another. Following one of these political rallies, a man was shot and killed. Most recently, acts of violence towards law enforcement and first responders include a Portland firefighter being shot in the chest with a steel ball bearing launched from an arm-mounted slingshot, a man dousing several police officers with high-powered bear deterrent spray, a man punching a female police officer in the face, and a woman striking a police officer in the head from behind with a wooden shield.
This violent and senseless criminal conduct does nothing to promote meaningful or positive change. It forces the focus away from racial justice, instills fear in our community, and deters visitors. It is destroying the fabric of a city and a state that we love.
As a direct consequence of this criminal behavior and the media attention it generates, this community must now deal with the threat of even more outsiders traveling to Portland to participate in what they’ve been watching on social media and television for weeks. This too is not a new phenomenon for Portlanders. In August 2019, after a summer of violent clashes between opposing protest groups, several groups put out national calls for supporters to travel to Portland to join in a citywide melee.
Fortunately, despite hundreds of people answering this call and traveling to Portland, the outstanding work of the Portland Police Bureau and other local law enforcement agencies kept opposing groups mostly separated and violence to a minimum. The city now faces a similar scenario for Saturday, September 26th where numerous groups with opposing ideologies are gathering in the Portland area.
This comes at a time when our community and state continue to grapple with the ongoing COVID-19 pandemic, a major uptick in gun violence, and, now, massive wildfires burning across the state. Already limited public safety resources are fatigued and stretched thin. Our community deserves an end to the violence. Together, we need to call out violent agitators on the right and the left and stand up for civility.
Local residents and anyone traveling to Portland with the intent to commit violence are on notice. There will be consequences for acts of violence. The U.S. Attorney’s Office is committed to prosecuting people who impede or assault law enforcement officers, damage federal property, and set fire to buildings. Make no mistake: those who commit violence in the name of protest, will be investigated, arrested, prosecuted, and face prison time. Already more than 100 people have been arrested and more than 80 people are facing federal charges related to protest violence.
Our office will work closely with our law enforcement partners, including the FBI, to monitor criminal activity, and will bring federal charges where appropriate. We are committed to supporting our community and will help our law enforcement partners perform their essential public safety duties.”
U.S. Attorney Scott W. Murray Announces Results in Fight Against the Opioid Crisis Two Years After Launch of Operation S.O.S.Read the Press Release
Concord – In July 2018, the Department of Justice announced the launch of Operation Synthetic Opioid Surge (S.O.S), a program aimed at reducing the supply of synthetic opioids in 10 high impact areas, including the District of New Hampshire and identifying wholesale distribution networks and international and domestic suppliers.
Under Operation SOS, the United States Attorneys in 10 districts with some of the highest drug overdose death rates in the country each designated a county where they would focus on prosecuting every readily available case involving fentanyl, fentanyl analogues, and other synthetic opioids, regardless of the drug quantity.
“The Justice Department’s commitment to fighting the opioids epidemic is stronger than ever, and we are using every tool in our arsenal to disrupt the supply of these drugs on our streets,” said Deputy Attorney General Jeffrey A. Rosen. “Operation SOS has had a significant positive impact on the communities where it is being employed. The Department will continue to build on these successes and work to stop the drug traffickers who so callously wreck lives.”
“Since the initiation of Operation SOS in New Hampshire, approximately 93 separate defendants have been charged with drug trafficking offenses in federal court,” said U.S. Attorney Murray. “By taking aggressive action against drug traffickers in Hillsborough County, Operation SOS is limiting the supply of fentanyl and other drugs in the community and helping to reduce the overdose death rate in that county. We also are sending a message to drug dealers that their dangerous and unlawful conduct will not be tolerated. We will continue to work with the Manchester and Nashua Police Departments, the Hillsborough County Attorney’s Office, the Drug Enforcement Administration, and all of our law enforcement partners in Hillsborough County to identify and prosecute the drug dealers who are damaging the quality of life in the Granite State.”
Numerous significant drug traffickers have been prosecuted under Operation SOS, including the following:
- Jai Britt, 45, of Manchester was sentenced to ten years in federal prison for trafficking in fentanyl, cocaine, heroin, and crack cocaine. Britt, who was selling drugs while on probation and wearing an ankle monitor, engaged in a hand-to-hand fentanyl transaction with a cooperating individual. A search warrant of his residence later yielded over 135 grams of crack cocaine, 194 grams of cocaine, and 1.5 grams of heroin.
- Richard Rowell, 47, of Nashua was sentenced to nine years in federal prison for trafficking crack cocaine while he was on bail for a state offense. Evidence in the case showed that Rowell, who had multiple prior drug trafficking convictions, also had been trafficking crack cocaine and fentanyl.
Several significant Operation SOS matters are pending trial, including the following:
- Jonathan Sargent, 37, of Manchester, has been charged with two counts of distributing fentanyl, one count of possessing methamphetamine and fentanyl with intent to distribute, possession of firearms in furtherance of drug trafficking, and possession of firearms by a convicted felon.
- Robert Audette, 30, of Manchester, has been charged with one count of distributing methamphetamine, two counts of distributing fentanyl, one count of possessing fentanyl with intent to distribute, one count of possession of a firearm in furtherance of drug trafficking, and one count of possession of a firearm by a convicted felon.
Nationally, since 2018, Operation SOS has resulted in approximately 750 defendants being charged in federal court, with 384 of those defendants charged thus far in FY 20. Most importantly, the districts participating in the program have seen a decline in opioid overdoses. From 2017 to 2019, most SOS counties reported a decline of 14% to 24%. One notable success was in the Western District of Pennsylvania, where the opioid overdose rates declined by nearly 45%.
The nine other participating districts and some of their successes are listed below:
- The Eastern District of California has reported 60 active Operation S.O.S. investigations. Recently, the USAO charged one sentence-enhanced “death resulting” prosecution. In February 2020, another investigation resulted in the seizure of over 20,000 fentanyl-laced counterfeit oxycodone pills.
- The Eastern District of Kentucky reported that an SOS investigation led to a residential search warrant and seizure of more than 1,300 grams of fentanyl, more than 500 grams of methamphetamine, $15,000 cash, two firearms, and paraphernalia used to traffic narcotics including a device for pressing fentanyl into a brick-like shape
- The District of Maine reported a July 2020 arrest of a defendant on charges of distributing counterfeit fentanyl pills marked as Percocet, in connection with a fatal fentanyl overdose that occurred in May 2020. In addition, a Maine man was sentenced in February 2020 to five years in prison for two counts of possession with intent to distribute fentanyl, in connection with an incident where the defendant was found in possession of fentanyl less than 24 hours after he was released on a state summons for possession of fentanyl.
- The Northern District of Ohio reported a 10-defendant wire case involving a drug trafficking organization (DTO) operating out of Elyria and Sandusky, Ohio. The DTO purchased kilogram quantities of cocaine and oxycodone pills. Co-conspirators would later cook the cocaine and sell it as crack to local dealers in Elyria. During the conspiracy, agents seized approximately ½ kilo of cocaine, 100 grams of crack, oxycodone pills, and five firearms.
- The Southern District of Ohio reported the arrest of an individual who had previously served a nine-year state prison sentence for drug trafficking. On October 22, 2019, after law enforcement observed activity consistent with drug transactions, including the delivery of what appeared to be a kilogram of narcotics by a courier, members of the FBI Safe Streets Task Force executed a search warrant at a residence in Dayton, Ohio, where they located three firearms, 1,205 grams of methamphetamine, 1,716 grams of fentanyl, 305 grams of heroin, drug processing equipment, and 12 cellular telephones. One of the recovered cellular telephones contained photographs of multiple kilograms of fentanyl and communications with a narcotics supplier. Through subsequent investigation, law enforcement recovered an additional 19.5 kilograms of fentanyl/carfentanil.
- The Western District of Pennsylvania prosecuted 98 SOS cases thus far in FY 2020. Particularly noteworthy among them is the prosecution of Lynell Guyton. Guyton was convicted by a jury of conspiracy to distribute 100 grams or more of cyclopropyl fentanyl and other charges, including firearms and money laundering violations. Guyton, who had been receiving shipments of fentanyl analogues from China, is both a Career Offender and an Armed Career Criminal. The case gained media attention when, during the execution of a search warrant in connection with the charges, the conspirators tipped over a table, sending cyclopropyl fentanyl into the air, sickening several law enforcement officers on the scene.
- The Eastern District of Tennessee reported multiple cases arising out of a single investigation involving a drug trafficking organization responsible for trafficking heroin and fentanyl from Michigan to various communities in the Eastern District of Tennessee. 29 defendants have been indicted on various charges, including drug trafficking conspiracy, overdose death enhancements, money-laundering conspiracy, and various firearms offenses. More than 5.5 kilograms of heroin and/or fentanyl and 11 firearms were seized during the investigation.
- The Northern District of West Virginia reported a July 21, 2020, forty-four count indictment against 12 defendants. During the nearly yearlong investigation, law enforcement officers seized more than 280 grams of cocaine base and more than 40 grams of fentanyl from one of the defendant’s residences in Harpers Ferry, West Virginia. Throughout the investigation, officers seized more than 280 grams of fentanyl, acetyl fentanyl, and heroin; more than 350 grams of cocaine base; more than one kilogram of liquid PCP; various amounts of cocaine; five firearms; and over $28,000.
- The Southern District of West Virginia reported that after a three-day trial, a jury convicted Steven McCallister of distribution of fentanyl, possession with the intent to distribute fentanyl, being a felon in possession of a firearm, and possession of a firearm in furtherance of drug trafficking. Officers conducted a 50-gram purchase of heroin from McCallister, which then led to the execution of a search warrant at McCallister’s home. Officers seized over one kilogram of fentanyl and a firearm.
The charges and allegations contained in an indictment are simply an allegation. All defendants are presumed innocent unless and until proven guilty.
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- Jai Britt, 45, of Manchester was sentenced to ten years in federal prison for trafficking in fentanyl, cocaine, heroin, and crack cocaine. Britt, who was selling drugs while on probation and wearing an ankle monitor, engaged in a hand-to-hand fentanyl transaction with a cooperating individual. A search warrant of his residence later yielded over 135 grams of crack cocaine, 194 grams of cocaine, and 1.5 grams of heroin.
U.S. Attorney J. Douglas Overbey Announces $142,139 in Department of Justice Grant Awards for Project Safe Neighborhoods in East TennesseeRead the Press Release
KNOXVILLE, Tenn. – United States Attorney J. Douglas Overbey of the Eastern District of Tennessee announced today that $142,139 was awarded in Department of Justice grants to Project Safe Neighborhoods in East Tennessee.
The goal of this funding is to implement effective programs and strategies that enable PSN task forces to prevent, respond to, and reduce violent crime; effectively use intelligence and data to identify high-crime areas and prolific violent offenders; foster collaboration with affected communities; and create and maintain ongoing coordination among federal, state, local, and tribal law enforcement officials.
“The Eastern District of Tennessee is committed to the PSN program and its proven results. Our district has a strong track record of working with our federal, state and local partners to prosecute cases aimed at reducing violent crime in our communities. This funding will only enhance our current PSN program and will serve as a larger anti-crime strategy platform,” said U.S. Attorney Overbey.
Project Safe Neighborhoods (PSN) is designed to create and foster safer neighborhoods through a sustained reduction in violent crime. The program's effectiveness depends upon the ongoing coordination, cooperation, and partnerships of local, state, tribal, and federal law enforcement agencies working together with the communities they serve. Agencies have the ability to apply for remaining allocations through this consolidated block grant.
- Elizabethton Police Department - $41,880
- Knoxville Police Department - $69,000
- Hancock Co. Sheriff’s Department - $23,586
- Chattanooga Police Department - $7,673
There are five core components to the PSN strategy: strategic planning, partnerships, training, outreach and accountability. Initially, PSN increased partnerships among federal, state, and local law enforcement agencies through the formation of a local gun crime enforcement task force. Additional partnerships were established with local governments, social service providers, and community groups to increase resources for prevention efforts, and to increase the legitimacy of law enforcement interventions.
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U.s. Attorney Halsey Frank Reports on Operation S.o.s. Two Years After Its LaunchRead the Press Release
PORTLAND, Maine – In July 2018, the Department of Justice launched Operation Synthetic Opioid Surge (S.O.S), a program aimed at reducing the supply of synthetic opioids in 10 high-impact areas, including the District of Maine. Under Operation S.O.S., the United States Attorneys in 10 districts with some of the highest drug overdose death rates in the country designated a county where they would prosecute cases involving fentanyl, fentanyl analogues and other synthetic opioids, regardless of the drug quantity.
“The Justice Department’s commitment to fighting the opioids epidemic is stronger than ever, and we are using every tool in our arsenal to disrupt the supply of these drugs on our streets,” said Deputy Attorney General Jeffrey A. Rosen. “Operation S.O.S. has had a significant positive impact on the communities where it is being employed. The Department will continue to build on these successes and work to stop the drug traffickers who so callously wreck lives.”
“Operation S.O.S. Maine has helped the US Attorney’s Office play our role in the group effort to combat the opioid crisis that has so plagued our community by interdicting deadly synthetic opioids and prosecuting the individuals who distribute them in the State of Maine,” said U.S. Attorney Frank. “Every day our federal, state and local law enforcement partners are working together to bring these dealers to justice.”
For example, in Maine, a man was arrested in July 2020 for distributing counterfeit fentanyl pills marked as Percocet, in connection with a fatal fentanyl overdose that occurred in May 2020. In February 2020, another Maine man was sentenced to five years in prison for two counts of possession with intent to distribute fentanyl, in connection with an incident where the defendant was found in possession of fentanyl less than 24 hours after he was released on a state summons for possession of fentanyl.
Overall, the U.S. Attorney’s Office for the District of Maine has prosecuted 75 individuals under Operation S.O.S. since the initiative began in 2018. Nationally, since 2018, Operation S.O.S. has resulted in approximately 750 defendants being charged in federal court, with 384 of those defendants charged thus far in FY 20.
The nine other participating districts and some of their successes are listed below:
- The Eastern District of California reported 60 active Operation S.O.S. investigations. Recently, the USAO charged one sentence-enhanced “death resulting” prosecution. In February 2020, another investigation resulted in the seizure of over 20,000 fentanyl-laced counterfeit oxycodone pills.
- The Eastern District of Kentucky reported that an S.O.S. investigation led to a residential search warrant and seizure of more than 1,300 grams of fentanyl, more than 500 grams of methamphetamine, $15,000 cash, two firearms, and paraphernalia used to traffic narcotics including a device for pressing fentanyl into a brick-like shape.
- The District of New Hampshire reported the October 2019 arrest of a man on a warrant for distributing fentanyl. Manchester Police detectives executed a search warrant on a local drug-house, where they located approximately 850 grams of methamphetamine and 56 grams of fentanyl, several assault-style rifles, a handgun, ammunition, scales, safes, cash and cellphones.
- The Northern District of Ohio reported a 10-defendant wire case involving a drug trafficking organization (DTO) operating out of Elyria and Sandusky, Ohio. The DTO purchased kilogram quantities of cocaine and oxycodone pills. Co-conspirators would later cook the cocaine and sell it as crack to local dealers in Elyria. During the conspiracy, agents seized approximately ½ kilo of cocaine, 100 grams of crack, oxycodone pills and five firearms.
- The Southern District of Ohio reported the arrest of an individual who had previously served a nine-year state prison sentence for drug trafficking. On October 22, 2019, after law enforcement observed activity consistent with drug transactions, including the delivery of what appeared to be a kilogram of narcotics by a courier, members of the FBI Safe Streets Task Force executed a search warrant at a residence in Dayton, Ohio. They located three firearms, 1,205 grams of methamphetamine, 1,716 grams of fentanyl, 305 grams of heroin, drug processing equipment and 12 cellular telephones. One of the recovered cellular telephones contained photographs of multiple kilograms of fentanyl and communications with a narcotics supplier. Through subsequent investigation, law enforcement recovered an additional 19.5 kilograms of fentanyl/carfentanil.
- The Western District of Pennsylvania reported prosecuting 98 S.O.S. cases thus far in FY 2020. Particularly noteworthy among them is the prosecution of Lynell Guyton. A jury found Guyton guilty of conspiracy to distribute 100 grams or more of cyclopropyl fentanyl and other charges, including firearms and money laundering violations. Guyton, who had been receiving shipments of fentanyl analogues from China, is both a Career Offender and an Armed Career Criminal. The case gained media attention when, during the execution of a search warrant in connection with the charges, the conspirators tipped over a table, sending cyclopropyl fentanyl into the air, sickening several law enforcement officers on the scene.
- The Eastern District of Tennessee reported multiple cases arising out of a single investigation involving a drug trafficking organization responsible for trafficking heroin and fentanyl from Michigan to various communities in the Eastern District of Tennessee. 29 defendants have been indicted on various charges, including drug trafficking conspiracy, overdose death enhancements, money-laundering conspiracy and various firearms offenses. More than 5.5 kilograms of heroin and/or fentanyl and 11 firearms were seized during the investigation.
- The Northern District of West Virginia reported a July 21, 2020 44-count indictment against 12 defendants. During the nearly yearlong investigation, law enforcement officers seized more than 280 grams of cocaine base and more than 40 grams of fentanyl from one of the defendants’ residences in Harpers Ferry, West Virginia. Throughout the investigation, officers seized more than 280 grams of fentanyl, acetyl fentanyl, and heroin; more than 350 grams of cocaine base; more than one kilogram of liquid PCP; various amounts of cocaine; five firearms; and over $28,000.
- The Southern District of West Virginia reported that after a three-day trial, a jury convicted Steven McCallister of distribution of fentanyl, possession with the intent to distribute fentanyl, being a felon in possession of a firearm and possession of a firearm in furtherance of drug trafficking. Officers conducted a 50-gram purchase of heroin from McCallister, which then led to the execution of a search warrant at McCallister’s home. Officers seized over one kilogram of fentanyl and a firearm.
Two Sentenced in Scheme to Fraudulently Obtain Licenses for Massage TherapyRead the Press Release
DENVER – United States Attorney Jason R. Dunn announced that two individuals, including a Chinese national, were sentenced for wire fraud in a scheme to falsify education credentials to obtain massage therapy licenses. The Denver Division of the FBI joined in this announcement.
Yongbo Shen, a/k/a Kevin Shen, age 49, who is originally from China and currently from Massachusetts, was sentenced to serve 15 months in prison for his role as the leader of the scheme. Co-defendant Marla Daniels, age 51, of Oklahoma City, was sentenced to serve 3 years of probation, including 8 months of home detention.
According to court documents, between February 16, 2015, and March 3, 2018, Shen and Daniels fraudulently obtained the questions and answers to the exam that Colorado requires for applicants to become a massage therapist. With the help of others, Shen then caused the questions and answers to be translated from English to Chinese – essentially creating an unauthorized question and answer key -- or cheat sheet -- for the examination. As part of the scheme, Shen then distributed the cheat sheet to multiple applicants in exchange for a fee. This allowed otherwise unqualified applicants to pass the test and provided them with an unfair competitive advantage over other persons taking the test.
Daniels and Shen also created and issued multiple bogus diplomas, which falsely certified that certain applicants for the state license had successfully completed the requisite 500 hours of instruction and training from a massage therapy program and had graduated from the Majestic Massage Therapy school. As part of the fraud, Shen worked with Daniels to help create and falsify course transcripts and diplomas.
Shen would submit applications for massage therapy licenses to the State of Colorado Department of Regulatory Affairs on behalf of applicants. In the course of submitting the applications, Shen falsely certified that the information contained within the applications was true and correct, when in fact, Shen knew the applications contained false information regarding the applicants’ educational qualifications and examination requirements.
“Falsifying credentials, regardless of the industry, is criminal, and those responsible will be held accountable,” said U.S. Attorney Jason Dunn. “The defendants in this case certified unqualified individuals to practice massage therapy, leaving those who use those services vulnerable.”
“The FBI is committed to protecting consumers from those who seek to falsify licensing processes for personal gain,” said FBI Denver Special Agent in Charge Michael Schneider. “We will continue to work collaboratively with our federal, state, and local regulatory and law enforcement partners to identify and hold accountable individuals who exploit our business licensing guidelines at the expense of the American people.”
Daniels and Shen were prosecuted by Assistant U.S. Attorney Tim Neff. The sentence was pronounced by U.S. District Court Judge Robert E. Blackburn on September 16, 2020. This case was investigated by the FBI Denver Division with substantial assistance from the FBI Kansas City Division, the FBI Oklahoma City Division, the Arvada Police Department, the Colorado State Patrol, the Wheat Ridge Police Department, Lakewood Police Department, Aurora Police Department and the Denver Police Department.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Colorado. Related court documents can be found on PACER. The defendants case number is 19-cr-263.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Two Men Indicted for Armed Convenience Store RobberiesRead the Press Release
NORFOLK, Va. – A federal grand jury returned an indictment late yesterday charging two men with the armed robbery of multiple convenience stores in the Hampton Roads region.
According to the allegations in the indictment, Darrius Ford, 19, of Portsmouth, and Daniel Zeigler-Irizarry, Jr., 21, of Norfolk, robbed several convenience stores of cash and commercial products in the cities of Hampton, Newport News, Portsmouth, and Chesapeake. Unbeknownst to Ford and Zeigler-Irizarry, during the final robbery, a tracker was embedded in the stolen money. Using the signal emitted from that tracker, Newport News Police located the defendants in a stolen vehicle and attempted to initiate a traffic stop. Ford and Zeigler-Irizarry led police on a high-speed pursuit before crashing. Both were apprehended a short distance away from the scene of the crash.
Ford and Zeigler-Irizarry, Jr. are charged with conspiracy to interfere with commerce by means of robbery, seven counts of interference and attempted interference with commerce by means of robbery, and six counts of using a firearm during a crime of violence. If convicted, Ford and Zeigler-Irizarry, Jr. face a mandatory minimum sentence of 42 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Mark Herring, Attorney General of Virginia; Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office; Angela Greene, Chief of Portsmouth Police; Col. K.L. Wright, Chief of Chesapeake Police; Terry L. Sult, Chief of Hampton Police Division; and Steve R. Drew, Chief of Newport News Police, made the announcement. Special Assistant U.S. Attorney Kristin G. Bird and Assistant U.S. Attorney Sherrie S. Capotosto are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:20-cr-87.
Two Men Accused of Fraud Against Warm Springs TribeRead the Press Release
PORTLAND, Ore.—U.S. Attorney Billy J. Williams announced today that two men have been charged with Fraud crimes against the Confederated Tribes of Warm Springs, Oregon.
A federal grand jury in Portland has returned a 6 count indictment charging Roderick Ariwite, age 65, a resident on the Fort Hall Reservation in Idaho, and Thomas Adams, age 48, a resident on the Warm Springs Reservation, with Conspiracy and Theft/Misapplication of Funds from a Tribal Organization. This indictment charges Ariwite and Adams with conspiring to misappropriate $93,700 of tribal funds and with five counts of substantive misappropriation of tribal funds.
In a separate indictment, Ariwite is charged alone with Interstate Transportation of Security Taken by Fraud. This indictment alleges interstate transportation of a $23,000 check Ariwite obtained by fraud from a board member of a tribal business entity.
According to the indictments, Ariwite was CEO of the Warm Springs Economic Development Corporation (WSEDC) d/b/a Warm Springs Ventures (WSV). WSV operates as the management organization for several tribal business ventures. One of those ventures is the Warm Springs Construction Enterprise (WSCE). WSCE bids on and executes construction projects like building roads and commercial buildings. Thomas Adams was Manager of WSCE, under the supervision of Ariwite.
The indictment against Ariwite and Adams alleges that beginning in October 2017, Ariwite and Adams created their own construction company called Warbonnet Construction Services. Thereafter, and on tribal time, while drawing tribal salaries and travel reimbursements, they engaged in work projects for Warbonnett. The indictment alleges that in one instance Ariwite and Adams used $48,900 in tribal funds to hire a subcontractor for a Warbonnet construction project.
The indictment also alleges Ariwite and Adams hired REDD, a consulting company Ariwite operated, for two projects that gave no benefit to the Tribe. Ariwite and Adams paid REDD $9,800 to create a Statement of Qualifications (a marketing brochure) for WSCE. Ariwite and Adams jointly created the SOQ and they allegedly included false and fabricated information about WSCE. For instance, most of the construction projects the SOQ said WSCE had worked on were in fact projects by a private construction company Ariwite and Adams worked with through Warbonnet. Additionally, some of the supposed WSCE professional staff the SOQ profiled were employees of the private construction company. Ariwite and Adams submitted the false and fabricated SOQ to WSCE and allegedly enriched themselves with $9,800 of tribal funds.
Ariwite and Adams also paid REDD $28,000 in tribal funds to create and submit to the U.S. Small Business Administration what is known as an 8(a) application. SBA operates a business development program for small, disadvantaged businesses and an 8(a) certification gives preferences to bid on government contracts. REDD never produced an 8(a) application. In this way, Ariwite and Adams allegedly misapplied $28,000 in tribal funds and enriched themselves with these funds.
The separate indictment against Ariwite alleges that in May/June 2018, Ariwite defrauded a WSV board member and transported the $23,000 fraud proceeds, in the form of a check drawn on the board member’s personal bank account, from Oregon to Idaho.
The Federal Bureau of Investigation investigated this case with assistance from the Warm Springs Police Department. It is being prosecuted by Seth D. Uram, Assistant U.S. Attorney for the District of Oregon.
An indictment is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
Two Knoxville Residents Charged in Federal Complaint with Conspiracy to Distribute Fentanyl, Heroin, and MethamphetamineRead the Press Release
Knoxville, Tenn. – On September 24, 2020, the United States Attorney’s Office filed a federal complaint charging two individuals, Michael Allen Hill, 45, and Heavyn Breanne Thomas, 23, both from Knoxville, TN, with conspiracy to distribute 400 grams or more of a mixture and substance containing a detectable amount of fentanyl, a Schedule II controlled substance, one kilogram or more of a mixture and substance containing a detectable amount of heroin, a Schedule I controlled substance, and 50 grams or more of methamphetamine, a Schedule II controlled substance. A trial date has not been set.
If convicted of this drug trafficking conspiracy, the defendants face mandatory minimum terms of imprisonment of 10 years and up to life, at least five years of supervised release, a fine of up to $10,000,000, any applicable forfeiture, and a $100 special assessment.
The investigation was conducted by the Knox County Sheriff’s Office Narcotics Unit and the Organized Retail Crime Unit, HIDTA’s Drug Related Death Task Force, and the Knox County Regional Forensics Center. On September 23, 2020, during the execution of a search warrant, officers, assisted by the Knox County Sheriff’s Office SWAT team, seized approximately 972 grams of a brown powdery substance of suspected heroin, 603 grams of a white powdery block-like substance suspected to be a heroin-fentanyl mixture, 865 grams of suspected crystal methamphetamine, multiple firearms, drug paraphernalia, and $51,950 in U.S. currency. Assistant U.S. Attorney Brent N. Jones will represent the United States.
Today, the United States continues to face an unprecedented drug epidemic. The Centers for Disease Control (CDC) estimates that more than 67,000 Americans died of drug overdoses in 2018. Many of these deaths are attributed to the increased abuse of potent and dangerous synthetic opioids like fentanyl. These charges are the result of investigations supported by the Organized Crime Drug Enforcement Task Forces (OCDETF) under the Attorney General-led Synthetic Opioid Surge (SOS)/Special Operations Division (SOD) Project Clean Sweep. This initiative seeks to reduce the supply of synthetic opioids in "hot spot" areas previously identified by the Attorney General of the United States, thereby reducing drug overdoses and drug overdose deaths, and identify wholesale distribution networks and sources of supply operating nationally and internationally.
Members of the public are reminded that the complaint in this case only constitutes a charge against these two individuals and that every person is presumed innocent until his or her guilt has been proven beyond a reasonable doubt.
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Two Former Deutsche Bank Traders Convicted of Engaging in Deceptive and Manipulative Trading Practices in U.S. Commodities MarketsRead the Press Release
A Chicago federal jury found two former employees of Deutsche Bank, a global financial institution, guilty today of fraud charges for their respective roles in fraudulent and manipulative trading practices involving publicly-traded precious metals futures contracts.
Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division and Assistant Director in Charge William Sweeney of the FBI’s New York Field Office made the announcement.
After a two-week trial, James Vorley, 42, of the United Kingdom, and Cedric Chanu, 40, of France and the United Arab Emirates, were convicted of three counts and seven counts, respectively, of wire fraud affecting a financial institution. Sentencing has been scheduled for Jan. 21, 2021, before U.S. District Judge John J. Tharp, Jr. of the Northern District of Illinois, who presided over the trial.
“Today’s jury verdict shows that those who seek to manipulate our public financial markets through fraud will be held accountable by juries and the department,” said Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division.
According to evidence presented at trial, Vorley and Chanu, who were employed as traders at Deutsche Bank—Vorley based in London; Chanu based in London and Singapore—engaged in a scheme to defraud other traders on the Commodity Exchange Inc., which was an exchange run by the CME Group. The defendants defrauded other traders by placing fraudulent orders that they did not intend to execute in order to create the appearance of false supply and demand and to induce other traders to trade at prices, quantities, and times that they otherwise would not have traded. Specifically, the evidence showed that the defendants engaged in the practice of “spoofing,” which means that they placed orders on the exchange which, at the time the orders were placed, they did not intend to execute, all for the purpose of deceiving other market participants.
This case was investigated by the FBI’s New York Field Office. Deputy Chief Brian Young, Assistant Chief Avi Perry, and Trial Attorney Leslie S. Garthwaite of the Criminal Division’s Fraud Section are prosecuting the case.
Individuals who believe that they may be a victim in this case should visit the Fraud Section’s Victim Witness website for more information.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Six Members of Paterson-Based 230 Boys Gang Indicted in 29-Count Second Superseding IndictmentRead the Press Release
NEWARK, N.J. – A federal grand jury has indicted six members of a Paterson street gang on charges of selling heroin and fentanyl, including a charge against one defendant for distributing heroin and fentanyl with death resulting, U.S. Attorney Craig Carpenito announced today.
Charged in a 29-count second superseding indictment are: Wyzier Peterson, 23, a/k/a “Trap;” Carl Brown, 26, a/k/a “C Dub,” a/k/a “Dub;” Aaryn Abrams, 24, a/k/a “AI;” Najier Boone, 24, a/k/a “Bebe;” Zikeme Brooks, 27, a/k/a “Zeek,” a/k/a “Ace;” and Jimir Ricks, 26, a/k/a “40,” a/k/a “Red.” 26.
The defendants are charged as follows:
Count
Charge
Defendant(s)
1
Conspiracy to distribute and to possess with intent to distribute 100 grams or more of heroin and 40 grams or more of fentanyl
Peterson, Brown, Abrams, Boone, Brooks, and Ricks
2
Distribution of heroin and fentanyl
Peterson and Ricks
3
Distribution of heroin
Brown and Boone
4
Distribution of heroin and fentanyl (with death resulting from the substance)
Peterson
5
Distribution of heroin
Peterson
6-13
Distribution of controlled substances (heroin and fentanyl)
Ricks
15
Distribution of heroin and fentanyl
Ricks and Abrams
16-18
Distribution of controlled substances (heroin and fentanyl)
Abrams
19-24
Distribution of controlled substances (heroin and fentanyl)
Boone
25
Distribution of heroin and fentanyl
Brooks
26
Distribution of 28 grams or more of cocaine base
Boone
27
Possession with intent to distribute heroin, fentanyl, and cocaine base
Abrams
28
Use of a firearm in furtherance of a drug trafficking crime
Abrams
29
Possession of a firearm by a convicted felon
Abrams
According to the documents filed in this case and statements made in court:The defendants and their conspirators are members and associates of the 230 Boys street gang, which operates primarily in and around Rosa Parks Boulevard and Godwin Avenue within the City of Paterson. Through numerous controlled purchases of narcotics, consensually recorded telephone calls and text messages, physical surveillance, and the analysis of telephone call detail records, law enforcement determined that from at least September 2018 through July 3, 2019, the defendants and their conspirators conspired to distribute narcotics, including heroin and fentanyl. In October 2019, the defendants and 10 other members and associates of the 230 Boys were charged by complaint.
Six co-defendants have since pleaded guilty before U.S. District Judge Brian R. Martinotti: Keith Brinkley, 30; Isaiah Hargrove, 21; Tyson Jacobs, 21; Amir Jones, 21; Dwayne Northern, 35; and Cequan Wharton, 30, all of Paterson.
Count 4 carries a mandatory minimum sentence of 20 years in prison, a maximum penalty of life in prison, and a mandatory fine of $1 million. Counts 1 and 26 carry a mandatory minimum sentence of five years in prison, and a maximum penalty of 40 years in prison, and a maximum fine of $5 million. Counts 2-3 and 5-27 carry a maximum penalty of 20 years in prison and a maximum fine of $1 million. Count 28 carries a mandatory minimum penalty of five years in prison and a maximum penalty of life in prison, which must run consecutively to any other term of imprisonment imposed, as well as a maximum fine of $250,000. Count 29 carries a maximum penalty of 10 years in prison and a maximum fine of $250,000.
This case is being conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
U.S. Attorney Carpenito credited special agents and task force officers with the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Division, under the direction of Special Agent in Charge Charlie J. Patterson; special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson in Newark; officers of the N.J. State Police, under the direction of Col. Patrick J. Callahan; officers of the Paterson Police Department, under the direction of Director Jerry Speziale and Police Chief Ibrahim Baycora; and detectives of the Passaic County Prosecutor’s Office, under the direction of Prosecutor Camelia Valdes, with the investigation leading to the charges. He also thanked the U.S. Marshals Service, the Bergen County Sheriff's Office and the Belleville and Livingston police departments for their assistance with the case.
The government is represented by Assistant U.S. Attorney Francesca Liquori of the U.S. Attorney’s Office’s Organized Crime and Gangs Unit in Newark.
The charges and allegations in the second superseding indictment and previous criminal complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Sham Trader Who Urged Investors to ‘Profit Off’ Pandemic Charged with Commodities FraudRead the Press Release
A man who urged investors to “profit off” the COVID-19 pandemic has been charged with commodities fraud, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
A federal grand jury indicted Kenzley Ramos, 27, of Lawrenceville, Georgia, on one count of commodities fraud for falsely promising investors that he would trade their money on foreign currency exchange markets while pocketing their funds. Mr. Ramos surrendered to federal authorities in Atlanta on Friday morning, and made his initial appearance in federal court on Friday afternoon.
According to the indictment, unsealed today, Mr. Ramos used a classified advertisements website to market himself as a skilled foreign currency exchange, or “forex,” trader.
As the nation’s stock markets cratered in the spring of 2020 due to the threat of COVID-19 outbreak, Mr. Ramos preyed on the public’s concerns surrounding the pandemic, telling prospective investors that the “stock market is crumbling” and inviting them to “profit off the coronavirus with forex.” He said there was “no possible way” investors could lose money with his expertise, claiming “guaranteed” returns as high as 300 percent.
Instead of investing their money, however, Mr. Ramos misdirected investors’ funds to his own personal use and to enrich others.
An indictment is merely an allegation of criminal conduct, not evidence. Like all defendants, Mr. Ramos is presumed innocent unless and until proven guilty in a court of law.
If convicted, Mr. Ramos faces up to 25 years in federal prison.
The Federal Bureau of Investigation’s Dallas Field Office conducted the investigation with the assistance of the Commodity Futures Trading Commission (CFTC) and the Texas State Securities Board (TSSB). Assistant U.S. Attorney Fabio Leonardi, the Northern District of Texas’ COVID-19 Coordinator, is prosecuting the case.
Se Acusa a Pareja de Chula Vista de Haber Estafado a Mujeres Embarazadas y a un Programa de Medi-Cal de CaliforniaRead the Press Release
RESUMEN DEL COMUNICADO DE PRENSA –24 de septiembre de 2020
SAN DIEGO – Melissa Álvarez Torres y José Luis Olmos Hernández, una pareja de Chula Vista que operaba lo que ellos afirmaban era una compañía privada que vendía seguros de salud, hicieron su primera comparecencia en el tribunal federal el día de hoy para responder a cargos de que se asociaron delictivamente para estafar a cientos de mujeres embarazadas y de ocasionarle aproximadamente 1.6 millones de dólares en pérdidas a Medi-Cal, un programa federal de servicios de salud.
Según una demanda penal que se reveló esta tarde, del 2016 hasta la fecha presente, Álvarez y Olmos se asociaron delictivamente para defraudar al Programa de Acceso a Medical ("MCAP," por sus siglas en inglés), que es un programa de servicios de salud que administra el Departamento de Servicios para el Cuidado de la Salud de California (DHCS, por sus siglas en inglés) que opera con fondos del gobierno estatal y el gobierno federal. MCAP es un programa diseñado para ayudar a familias trabajadoras de
medianos ingresos del estado de California que no cuentan con un seguro de salud adecuado que cubra los servicios de maternidad y el cuidado post-natal a un bajo costo basado en sus ingresos.
La demanda alega que Álvarez y Olmos promovían el "seguro" privado a mujeres embarazadas de nacionalidad mexicana que tuviesen una visa de trabajo o de turista. A través de publicidad en Facebook, donde se anunciaban bajo el nombre de Seguros Americanos Embarazo ("American Pregnancy Insurance"), Álvarez y Olmos engañosamente aducían que el "seguro" que ellos ofrecían permitiría que estas mujeres embarazadas dieran a luz legalmente en los Estados Unidos, sin arriesgar sus visas por utilizar los servicios gubernamentales. Le cobraron a cada una de las mujeres embarazadas miles de dólares por el supuesto "seguro".
Sin embargo, Álvarez y Olmos en realidad no tenían un seguro privado que pudiesen vender. En lugar de eso, ellos usaron la información personal que identificaba a estas mujeres para registrarlas para recibir las prestaciones que ofrece MCAP. Como se acusa en la demanda, Álvarez y Olmos presentaron cientos de solicitudes fraudulentas y documentación fiscal y de empleo fraudulenta para apoyar dichas solicitudes ante MCAP, simulando que las mujeres calificaban para recibir dichas prestaciones cuando en realidad no calificaban – y no habían dado su consentimiento para que se les inscribiera en dicho programa. Como resultado, se acusa a Álvarez y Olmos de haberles costado a los contribuyentes americanos millones de dólares en costos de servicios de salud, además de los cientos de miles de dólares en honorarios que recibieron de las mujeres a las que estafaron.
Álvarez y Olmos fueron arrestados el miércoles en la mañana como resultado de una investigación que involucró a múltiples dependencias, que inició el Departamento de Servicios para el Cuidado de la Salud de California, y que se llevó a cabo en cooperación con otras dependencias, incluyendo la Administración del Seguro Social, la Oficina de la Fiscalía Federal del Distrito Sur de California, y el Buró Federal de Investigaciones (FBI), para la aplicación de las leyes que gobiernan a Viajeros y la Residencia.
"No vamos a tolerar a estafadores que tratan de lucrar y aprovecharse de programas importantes de salud pública y de mujeres embarazadas", declaró el Fiscal Federal Brewer. "Seguiremos protegiendo al contribuyente americano y garantizaremos la integridad de los programas cuyo propósito es ayudar a los menesterosos e investigaremos y procesaremos penalmente a quienes tratan de aprovecharse de ellos".
"Agradecemos el apoyo crucial que las dependencias aliadas brindaron en esta investigación para arrestar a personas que tratan de aprovecharse de algunos de los miembros más vulnerables de nuestra sociedad, así como la asistencia que brindaron para proteger la integridad del programa Medi-Cal", señaló el Director de DHCS, Will Lightbourne.
"Agentes del FBI trabajan de manera diligente todos los días sin falta para descubrir actividades de fraude en contra del gobierno", declaró la Agente Especial a Cargo Suzanne Turner. "En este caso, los investigadores descubrieron una pérdida que se aduce es de 1.6 millones de dólares que sufrió el Programa Medi-Cal de California, así como dinero que se obtuvo de manera fraudulenta de cientos de mujeres embarazadas que creyeron que estaban comprando un seguro legítimo con cobertura para los servicios de salud que necesitaban. La viabilidad de los programas de servicios de salud gubernamentales depende de que estos programas se utilicen con honradez y para las personas necesitadas. Por ello, el FBI se mantiene firme en la realización del importante trabajo de descubrir el fraude en los servicios de salud, trabajando en alianza con el Departamento de Servicios para el Cuidado de la Salud de California y otras dependencias a cargo de la ejecución de la ley".
Si usted cree que ha sido víctima de Álvarez y Olmos, o si ha comprado un seguro de salud de Seguros Americanos Embarazo, por favor comuníquese con el Departamento de Servicios para el Cuidado de la
Salud de California, marcando el número 1-800-822-6222.
ACUSADOS Caso Núm. 20-mj-4076
MELISSA ÁLVAREZ TORRES Edad 33 Chula Vista, CA
alias "Melissa Torres"
alias "Melissa A. Torres"
JOSÉ LUIS OLMOS HERNÁNDEZ Edad 36 Chula Vista, CA
alias "José Luis Hernández"
alias "José L. Hernández"
alias "José Carlos"
alias "Carlos García"
RESUMEN DE LOS CARGOS
Asociación Delictuosa para Cometer Fraude a los Servicios de Salud y Fraude Mediante el Uso de Telecomunicaciones – Título 18, U.S.C., Sección 1349
Pena Máxima: 20 años de encarcelamiento y una multa de $250,000 dólares, o dos veces la ganancia monetaria o dos veces la pérdida monetaria, lo que resulte ser mayor. El resarcimiento es obligatorio.
DEPENDENCIAS
Departamento de Servicios para el Cuidado de la Salud del Estado de California
Buró Federal de Investigaciones
*Los cargos y alegatos que contiene una acusación formal o demanda penal son únicamente acusaciones, y a los acusados se les considera inocentes a menos que y hasta que se pruebe su culpabilidad.
Santee, Nebraska Man Sentenced for Assault with a Dangerous WeaponRead the Press Release
United States Attorney Joe Kelly announced that Whitney Frazier, age 34, of Santee, Nebraska, was sentenced today by United States District Judge Robert F. Rossiter, Jr. to 51 months’ imprisonment for assault with a dangerous weapon. Frazier will also serve three years of supervised release after he is released from prison. There is no parole in the federal system.
In April 2018, Frazier assaulted a female acquaintance with whom he did not have a friendship or relationship. The victim was giving Frazier a ride to a house on the Winnebago Indian Reservation. Once at the home, Frazier attacked the victim, physically assaulting her by punching her and kicking her. The victim fled back to her vehicle and tried to drive away, but Frazier followed her and was able to get into the passenger seat of the vehicle. The victim was ordered to drive by Frazier, who also brandished an item the victim initially thought was a gun, later believed to be a pellet gun. The victim drove erratically attempting to get the attention of the police. The victim drove onto the Omaha Nation Indian Reservation and Frazier placed the car into park while it was in motion, causing the vehicle to stall. When the car stopped, the victim grabbed a screw driver in the car for protection from Frazier. Frazier took the screwdriver from the victim and used the handle end to stab the victim in the eye. The victim got out of the car and began to run away and flag down a passing vehicle. Frazier fled and was later arrested.
This case was investigated by the Omaha Nation Law Enforcement Services and the Federal Bureau of Investigation.
Rochester Man Going to Prison for 12 Years for Illegally Possessing A Gun and Attempting to Sell CocaineRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Miguel Gonzalez-Adams, 41, of Rochester, NY, who was convicted of attempted possession of cocaine with intent to distribute, and being a felon in possession of a firearm, was sentenced to serve 144 months in prison by U.S. District Judge Charles J. Siragusa.
Assistant U.S. Attorney Sean C. Eldridge, who handled the case, stated that on January 31, 2020, United States Postal Inspectors obtained a search warrant for a priority mail package that was sent from Puerto Rico to the defendant’s residence in Rochester. The package contained over two kilograms of cocaine. The cocaine was removed from the package and replaced with sham cocaine. Postal Inspectors then conducted a controlled delivery of the package to Gonzalez-Adams’ residence.
On February 3, 2020, once the defendant accepted delivery of the package, law enforcement officers executed a search warrant of Gonzalez-Adams’ residence. Officers found the opened package on the first floor of the house. The defendant was located in an upstairs bedroom with $2,435 in cash and a cell phone that displayed the tracking information for the cocaine package. Officers also recovered a loaded AR-15 style rifle, along with an additional 162 rounds of ammunition for that weapon.
Gonzalez-Adams was previously convicted in 1999 of felony crimes in the United States District Court for the District of Puerto Rico. As a result, he is legally prohibited from possessing a firearm.
The sentencing is the result of an investigation by the United States Postal Inspection Service, under the direction of Inspector-in-Charge Joseph W. Cronin of the Boston Division; the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; the Rochester Police Department, under the direction of Acting Chief Mark Simmons; the Monroe County Sheriff’s Office, under the direction of Sheriff Todd Baxter; the Ontario County Sheriff’s Office, under the direction of Sheriff Kevin M. Henderson; the Greece Police Department, under the direction of Chief Patrick D. Phelan; the Webster Police Department, under the direction of Chief Joseph Rieger; and the New York State Police, under the direction of Acting Major Barry Chase.
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Radiology Center Pays $501,000 to Resolve Healthcare Fraud AllegationsRead the Press Release
Fort Myers, FL – United States Attorney Maria Chapa Lopez announces that Advanced Imaging of Port Charlotte, LLC, a radiology center headquartered in Port Charlotte, Florida, has agreed to pay $501,000 to resolve allegations that it violated the False Claims Act by submitting fraudulent claims to Medicare and Tricare, a health care program for uniformed service members, retirees, and their families.
As part of the settlement, the United States contends that Advanced Imaging knowingly submitted claims to Medicare and Tricare by (1) administering dye-contrast scans without direct physician supervision as required by Federal regulations and (2) improperly billing for services performed by doctors who were not properly credentialed by Medicare.
“This settlement reflects our continuing efforts to protect our military and their families, our community, and the taxpayers by ensuring that the care provided to beneficiaries of government-funded healthcare programs is consistent with federal regulations,” said United States Attorney Chapa Lopez. “We will continue to hold healthcare providers accountable when they provide services by individuals who are not credentialed, licensed, or appropriately supervised.”
“Working alongside our investigative partners, The Defense Criminal Investigative Service (DCIS) is committed to protecting the integrity of the U.S. Military Healthcare program,” said Cynthia A. Bruce, Special Agent in Charge, DCIS Southeast Field Office. “DCIS appreciates the continual support of the U.S. Attorney's Office throughout Florida for their efforts to recoup financial losses which will be used for the care of our military beneficiaries.”
This settlement resulted from a coordinated effort by the U.S. Attorney’s Office for the Middle District of Florida, DCIS, and the U.S. Department of Health and Human Services Office of Inspector General. The investigation was led by Assistant U.S. Attorney David P. Sullivan.
The claims resolved by the settlement are allegations only and there has been no determination of liability. The civil settlement resolves the following captioned cases: United States, et al. v. KMH Cardiology Centres, Inc., et al., 2:16-cv-618-TPB-MRM, and United States of America, et al. v. SAVN Administrative Services, Inc., et al., 2:16-cv-622-SPC-MRM.
Philadelphia City Treasurer Arrested and Charged with Multiple FraudsRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Christian Dunbar, 40, of Philadelphia, PA, the current Philadelphia City Treasurer, was arrested this morning and charged by Criminal Complaint with embezzlement by a bank employee, conspiracy to commit marriage fraud, and fraudulent procurement of citizenship. U.S. Attorney McSwain detailed the charges at a press conference this afternoon in front of the James A. Byrne U.S. Courthouse in Philadelphia.
As the Philadelphia City Treasurer, Dunbar’s responsibilities include: (1) managing the City’s debt obligations, which includes overseeing the issuance of the City’s municipal bonds; (2) managing the City’s bank accounts, including its operating account, capital account, and petty cash accounts in various departments; (3) paying the City’s bills, including making payments to vendors, cutting payroll checks, and making payments to pension plans; and (4) managing the City’s cash reserves.
According to the Criminal Complaint, Dunbar allegedly participated in two schemes – (1) bank embezzlement and (2) marriage fraud in order to become a U.S. citizen.
The details of the alleged bank embezzlement scheme are as follows: Just weeks before his appointment to serve as the City’s Deputy Treasurer, Dunbar, while employed at Wells Fargo Bank in Newtown Square, stole $15,000 from two different bank customers. The Complaint alleges that on two separate occasions, once in December 2015 and again in January 2016, Victim #1 met with the defendant to transfer $5,000 between Victim #1’s Wells Fargo bank accounts. During both meetings, Dunbar allegedly directed Victim #1 to sign several documents, including a blank withdrawal slip. He later allegedly used the blank slips to withdraw cash from Victim #1’s account and deposit those funds into his own personal bank account.
The defendant allegedly used the same trick with Victim #2. In December 2015, Dunbar assisted Victim #2 in the same Wells Fargo branch and directed Victim #2 to sign several documents, including a blank withdrawal slip. As alleged in the Criminal Complaint, he later used the blank withdrawal slip to withdraw money from Victim #2’s account. Soon thereafter, Dunbar allegedly made significant cash deposits into his personal bank account.
Dunbar also allegedly participated in a conspiracy to enter into a sham marriage in order to secure immigration benefits, and ultimately U.S. citizenship, for himself and his family. The details of that alleged fraud are as follows: The Criminal Complaint alleges that the defendant and his current wife, identified in the Complaint by the initials “F.N.D.,” both entered into fraudulent marriages, Dunbar with Person #1 and his wife with Person #2. Prior to these sham marriages, Persons #1 and #2 were U.S. citizens, but Dunbar and F.N.D. were not – having been born in Liberia and Senegal, respectively. By marrying U.S. citizens, Dunbar and F.N.D. were able to gain their own U.S. citizenship.
These four individuals – Christian Dunbar, F.N.D., and Persons #1 and #2 – attended Temple University together and allegedly coordinated this sham marriage plan. Both of these sham marriages occurred within days of each other in December 2006 and were performed by the same officiant — a former Temple University professor. But since the time they attended Temple University together, Dunbar and F.N.D. were the only legitimate couple, marrying each other in Senegal in June 2013 (while Dunbar was still legally married to Person #1). On their child’s 2014 birth records, Dunbar is listed as the father, F.N.D. is listed as the mother, and they are listed as married to each other.
But in February 2012, relying on his sham marriage to Person #1, the defendant allegedly applied to become a permanent resident of the United States (which he certified as true under the penalty of perjury), was granted that status in October 2012, and then submitted additional paperwork to become a naturalized citizen in late 2015 and early 2016. As detailed in the Complaint, in paperwork he submitted in 2015 and in subsequent interviews, he continued to make fraudulent claims about his marital status, which was the basis for his becoming a naturalized citizen in January 2016. Two months later, he filed paperwork to divorce Person #1.
“The alleged conduct in this case shows a pattern of deception, dishonesty and criminality that no individual should ever engage in – but is especially alarming and intolerable for a high ranking City official,” said U.S. Attorney McSwain. “City officials whose job is to handle money should not be thieves. And they should not have a track record of engaging in elaborate immigration fraud against the public that they are supposed to serve. My Office will continue to hold public officials to the high standard of conduct that residents of this City deserve. And when we find that a public official’s behavior falls short, we will hold them accountable.”
“The accusations against Christian Dunbar run quite the criminal gamut, from stealing his own bank customers’ money to violating the immigration laws that help protect our national security,” said Michael J. Driscoll, Special Agent in Charge of the FBI's Philadelphia Division. “In his role as City Treasurer, Dunbar holds a position of public trust, making these charges lodged against him today extremely disturbing. The FBI is working every day to battle public corruption and the corrosive damage it does to people’s faith in government. We must hold public officials to high ethical standards — and we will hold them to obeying federal law.”
If convicted, Dunbar faces a maximum possible sentence of 45 years’ imprisonment and a fine of $1.5 million.
The case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Denise S. Wolf.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Perry Man Sentenced to Federal Prison for Child Pornography OffenseRead the Press Release
DES MOINES, IA – On September 17, 2020, United States District Court Judge Rebecca Goodgame Ebinger sentenced Michael James Hidlebaugh, age 38, of Perry, to 97 months in prison for Receipt of Child Pornography, announced United States Attorney Marc Krickbaum. Hidlebaugh was ordered to serve five years of supervised release to follow his prison term, pay $21,000 in restitution, and comply with sex offender registry requirements upon release.
The investigation began in September 2017 when law enforcement received an investigative lead from the National Center for Missing and Exploited Children that images of child pornography had been uploaded to Hidlebaugh’s email account. Following further investigation, law enforcement executed a search warrant at Hidlebaugh’s Perry residence in May 2018. Law enforcement seized multiple electronic devices, which contained hundreds of images and videos of child pornography. The investigation showed that from July 2016 to April 2018, Hidlebaugh received child pornography.
This case was investigated by the Iowa Division of Criminal Investigation Internet Crimes Against Children Task Force and the FBI Child Exploitation Task Force. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Parma Man Sentenced to over 16 Years for Distribution of Child PornographyRead the Press Release
BOISE – Jason Harvey, 45, of Parma, was sentenced in U.S. District Court to 200 months in federal prison for distribution of child pornography, U.S. Attorney Bart M. Davis announced today. U.S. District Judge B. Lynn Winmill also sentenced Harvey to a lifetime of supervised release following his prison sentence. Harvey pleaded guilty to the charge on June 24, 2020.
According to court records, the investigation began after Google, Facebook, and Yahoo! reported that child pornography had been uploaded to various online accounts between December 23, 2016 and March 25, 2019. The reports were assigned to the Idaho Internet Crimes Against Children (ICAC) Task Force for investigation. ICAC obtained search warrants for the online accounts, which revealed the accounts belonged to Harvey. Within the accounts, ICAC located images and videos of child pornography and emails and messages where Harvey discussed trading child pornography with others. ICAC also located several emails and messages where Harvey sent child pornography files to other individuals and received child pornography files in return. A federal magistrate judge issued a search warrant for Harvey’s residence in Parma. During the execution of the search warrant, ICAC detectives interviewed Harvey. Harvey admitted ownership of the online accounts, but denied involvement in child pornography.
Judge Winmill also ordered Harvey to pay $6,000 in restitution to victims in the images he possessed. As a result of his conviction, Harvey will be required to register as a sex offender.
This case was investigated by the Idaho ICAC Task Force with assistance from United States Postal Inspection Service, Canyon County Prosecutor’s Office, Canyon County Sheriff’s Office, Caldwell Police Department, and Parma Police Department.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. As part of Project Safe Childhood, the U.S. Attorney’s Office for the District of Idaho and the Idaho Attorney General’s Office partner to marshal federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims.
For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Owner of Tax Preparation Business Sentenced to Prison for Filing False ReturnsRead the Press Release
A former Gulfport, Mississippi, tax return preparer was sentenced to 46 months in prison today for aiding and assisting in the preparation of false returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Mike Hurst for the Southern District of Mississippi.
According to documents and information provided to the court, Alvin Mays owned and operated City Tax Service, a return preparation business in the Gulfport, Mississippi, area. From 2012 through 2017, Mays prepared – and trained his employees to prepare – false tax returns. To fraudulently inflate client refunds, the returns claimed false education credits and losses from fictitious business. Mays charged his clients exorbitant preparation fees, sometimes as high as $1,600 per return. In all, Mays’s conduct caused a tax loss to the United States of more than $900,000.
In addition to the term of imprisonment, U.S. District Judge Halil S. Ozerden ordered Mays to serve one year of supervised release and to pay $321,605 in restitution to the United States.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Hurst thanked special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorney Kevin Schneider of the Tax Division and Assistant U.S. Attorney Stanley Harris, who prosecuted the case.
Owner of the Surrogacy Group Pleads Guilty in Federal Court in Maryland for Defrauding Clients of Fees Paid to Find and Support A Pregnancy SurrogateRead the Press Release
Baltimore, Maryland – Gregory Ray Blosser, age 38, of Tampa, Florida, pleaded guilty today to a federal wire fraud charge in connection with a scheme to defraud clients of The Surrogacy Group (TSG), which he owned and operated from offices in Annapolis, Maryland and Tampa, Florida. Blosser was arrested on April 29th in Florida and has been under home confinement since his arrest.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur and Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office.
“The facts of this case are especially egregious because Gregory Blosser took advantage of individuals who were trying to become parents,” said U.S. Attorney Robert K. Hur. “Criminals like Blosser, who line their pockets through such heartless deceit, will be held accountable.”
“Dreams, hopes and bank accounts were wiped clean by Mr. Blosser who preyed on couples who were already in a vulnerable place,” said Jennifer C. Boone, Special Agent in Charge of the FBI Baltimore Field Division. “This guilty plea is a reminder that the FBI will use our resources appropriately to root out fraudulent surrogacy schemes that violate the trust of the American public."
According to Blosser’s plea agreement, TSG was incorporated in Maryland on January 5, 2012 and offered and sold surrogacy-related services throughout the United States and internationally to individuals who desired to have children using a pregnancy surrogate. From at least 2015 until his arrest in 2019, Blosser solicited and accepted funds from TSG clients who desired to have children using a surrogate, representing that these funds would be held in escrow. Blosser told the clients that he would act as their agent disbursing the funds to the surrogate pursuant to contracts between the TSG client and TSG, and the TSG client and the surrogate.
Instead, Blosser admitted that beginning in 2017, he converted a significant portion of the funds he promised to hold in escrow to his own use without the authorization of the TSG client and failed to pay the surrogate as he had agreed to do. Blosser did not, as promised, create separate escrow accounts for these funds and as a result, those funds intermingled with TSG’s operating accounts and were used to pay business expenses, service business loans, and for other purposes not permitted under the escrow agreements. TSG clients were forced to pay the surrogate’s expenses themselves, effectively paying twice for the services Blosser had promised to deliver.
As detailed in his plea agreement, at Blosser’s direction, at least seven victims paid fees to establish an escrow account to be controlled by Blosser, with the funds to be used to find a suitable surrogate, and to support the surrogate during a pregnancy. The victims lived in Maryland, Australia, North Carolina, Germany, and Virginia. In each case, after the victims deposited funds into the escrow account, Blosser either did not locate a suitable surrogate, or did not pay the surrogate the agreed-upon fees.
In total, Blosser fraudulently obtained approximately $1,104,706 from approximately 44 victims.
Blosser is also facing related civil suits filed by the States of Maryland and Florida.
Blosser faces a maximum sentence of 20 years in prison for wire fraud. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. U.S. District Judge Ellen L. Hollander has scheduled sentencing for January 15, 2021, at 2:00 p.m.
United States Attorney Robert K. Hur commended the FBI for its work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Leo J. Wise, who is prosecuting the case.
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Orange Park Man Charged with Sex Trafficking A Child After Traveling to Meet A Child for SexRead the Press Release
Jacksonville, Florida – United States Attorney Maria Chapa Lopez announces the filing of a criminal complaint charging Gregory Thomas Garcia (34, Orange Park) with commercial sex trafficking of a child. If convicted, Garcia faces a minimum mandatory penalty of 10 years, and up to life, in federal prison.
According to the complaint, beginning at least by October 2019, Garcia began communicating via text message with a minor victim, who was 16 years old at the time. A special agent with Homeland Security Investigations discovered the text messages between Garcia and the victim while investigating a separate crime. The victim confirmed to the special agent and a detective with the Clay County Sheriff’s Office that she had met with Garcia more than 20 times, and on each occasion Garcia had paid her to allow Garcia to sexually abuse her.
The victim also disclosed to agents additional messages that she had exchanged with Garcia via Snapchat. The victim agreed to let agents take over her Snapchat account in order to conduct an undercover investigation of Garcia.
From September 21-23, 2020, an undercover agent, posing as the victim, communicated with Garcia via the Snapchat account. In those communications, Garcia arranged to meet the victim in a parking lot and agreed to provide the victim with $150, a Sprite soda, and Starburst candy in exchange for the victim allowing Garcia to sexually abuse her. On September 23, 2020, Garcia obtained money, a Sprite soda, and Starburst candy, and traveled to the location where he had expected to meet with the victim. Garcia was then arrested by law enforcement.
A complaint is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by Homeland Security Investigations and the Clay County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Laura Cofer Taylor.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Operation Shutdown Corner Update: Ohio Man Sentenced for Federal Drug CrimeRead the Press Release
BECKLEY, W.Va. – An Ohio man was sentenced for his participation in an extensive drug trafficking organization (DTO) operating between California, Ohio, Michigan, and the Southern District of West Virginia, announced United States Attorney Mike Stuart. Jason Johnson, 31, of Columbus, was sentenced to 78 months in prison, to be followed by a three year term of supervised release, for conspiring to distribute 50 grams or more of methamphetamine. Johnson was one of 17 defendants charged as a result of a long-term investigation, known as “Operation Shutdown Corner.”
“Through operations like Shutdown Corner, we can curtail meth trafficking in our communities,” said United States Attorney Mike Stuart. “Johnson is one of 17 defendants charged as a result of this investigation which brought an end to a DTO responsible for distributing significant amounts of illicit drugs in our southern counties.”
Johnson previously admitted that between June 2018 and September 17, 2019, he participated in the DTO by supplying Stephanie McClung, a co-defendant in this matter, and others with distribution amounts of methamphetamine and heroin. During this time period, Johnson admitted to selling more than 50 grams of a substance containing methamphetamine to McClung knowing it was her plan and purpose to re-distribute those drugs in and around Raleigh County and the Southern District of West Virginia. Johnson admitted to meeting with McClung several times a week to supply her with drugs.
Stuart commended the cooperative investigative efforts of the Federal Bureau of Investigation (FBI), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the United States Postal Inspection Service (USPIS), the Beckley/Raleigh County Drug and Violent Crimes Task Force, the Raleigh County Sheriff’s Office, the Beckley Police Department, and the West Virginia State Police.
Assistant United States Attorney Timothy D. Boggess handled the prosecution. United States District Judge Frank W. Volk imposed the sentence.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:19-cr-00237.
Follow us on Twitter: SDWVNews and USAttyStuart
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Operation Legend: Case of the DayRead the Press Release
Each weekday, the Department of Justice will highlight a case that has resulted from Operation Legend. Today’s case is out of the Western District of Missouri. Operation Legend launched in Kansas City on July 8, 2020, in response to the city facing increased homicide and non-fatal shooting rates.
United States vs. Daniel Dewayne Gregg
A Bates City, Missouri, man was charged in federal court after law enforcement officers seized nearly two dozen firearms and illegal drugs from his residence.
Daniel Dewayne Gregg, 57, was charged on Sept. 11, 2020, with one count of conspiracy to distribute methamphetamine and one count of possessing a firearm in furtherance of drug trafficking.
According to court documents, law enforcement officers identified Gregg as a major supplier of methamphetamine trafficking following several controlled drug purchases. Officers executed a search warrant at Gregg’s residence on Friday, Sept. 11, and placed him under arrest.
It is alleged that Gregg told officers that he had been dealing crystal methamphetamine continuously for at least the past six months and stated that he was a kilogram-level dealer of crystal methamphetamine and had sold, at a conservative minimum, at least 12 kilograms of crystal methamphetamine per month for the past six months. Gregg stated he had several large-scale customers who purchased at least a half-kilogram of methamphetamine from him at a time. Gregg said he purchased methamphetamine for $12,000 per kilogram and sold it for about $13,000 per kilogram.
Officers located a large firearms safe in the basement of Gregg’s residence that contained 22 firearms and a large amount of cash. Officers also searched Gregg’s vehicle and found 151.6 grams of methamphetamine, 436.5 grams of marijuana, and 207 prescription pills in unlabeled pill bottles. Officers also found methamphetamine inside a fanny pack and a loaded Smith and Wesson .40-caliber semi-automatic pistol on top of the fanny pack. Gregg allegedly told officers he had the firearm because he had been threatened by individuals wanting to do him harm.
The details contained in the charging document are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Background on Operation Legend
Since its inception, Operation Legend has yielded more than 3,500 local, state, and federal arrests, with more than 800 defendants charged with federal crimes.President Trump promised to assist America’s cities that have been plagued by violence. In July, Attorney General William P. Barr announced the launch of Operation Legend, a sustained, systematic and coordinated law enforcement initiative across all federal law enforcement agencies working in conjunction with state and local law enforcement officials to fight violent crime in cities across America that were experiencing an uptick in violence. Operation Legend is named after four-year-old LeGend Taliferro, who was shot and killed on June 29th in Kansas City, Missouri, while asleep in his home.
Operation Legend was launched in Kansas City, Mo., on July 8, 2020, and expanded to Chicago and Albuquerque on July 22, 2020; to Cleveland, Detroit, and Milwaukee on July 29, 2020; to St. Louis and Memphis on Aug. 6, 2020; and to Indianapolis on Aug. 14, 2020. As part of Operation Legend, Attorney General Barr has directed federal agents from the FBI, U.S. Marshals Service, DEA and ATF to surge resources to these cities to help state and local officials fighting violent crime. The Department of Homeland Security is also contributing agents to these efforts in St. Louis.
Ocala Convicted Felon Sentenced to 30 Months in Federal Prison for Possessing A FirearmRead the Press Release
Ocala, Florida – Senior United States District Judge John Antoon II today sentenced Jonathan Cruz Carino (28, Ocala) to two and a half years in federal prison for possession of a firearm affecting commerce by a convicted felon. Carino had pleaded guilty on June 22, 2020.
According to court documents, on May 10, 2019, City of Ocala police officers responded to a call concerning a potential shooting. Upon arrival, they located Carino and a juvenile in a wooded area adjacent to a boat. A search of the boat revealed two loaded handguns concealed under a tarp. The juvenile told authorities that Carino had been trying to sell the firearms. The FBI laboratory subsequently confirmed a substantial DNA profile from Carino on one of the firearms. Carino has previous state felony convictions for drug possession and the sale of drugs near a place of worship. As a consequence, he is prohibited from possessing firearms and ammunition under federal law.
This case was jointly investigated by the City of Ocala Police Department and the FBI. It was prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Niagara Falls Man Going to Prison for Possessing Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Randy Colucci, 36, of Niagara Falls, NY, who was convicted of possessing child pornography, was sentenced to 75 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Michael DiGiacomo, who handled the case, stated that in April 2017, a Homeland Security Investigations Special Agent, working undercover, discovered multiple files containing videos and images of child pornography being shared on a peer to peer website. Some of the videos and images depicted prepubescent children in sexual situations. Investigators determined that the IP address connected to the files related to one utilized by the defendant, which led to the execution of a search warrant at his residence. Digital media recovered from Colucci in June 2017 contained child pornography, including children under the age of 10, and images of children involved in violent sexual assaults.
At the time of his arrest, the defendant was on New York State parole for a 2011 manslaughter conviction, involving the death of his two-year-old daughter.The sentencing is the result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
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New Orleans Woman Charged for Theft of More Than $69,000 in Social Security FundsRead the Press Release
NEW ORLEANS - United States Attorney Peter G. Strasser announced that VALERIE YOREL MANSON (“MANSON”), age 51, of New Orleans, Louisiana, was charged on September 22, 2020 by a Bill of Information for Theft of Government Funds, in violation of Title 18, United States Code, Section 641.
According to the Bill of Information, beginning in 2010 and continuing through 2016, MANSON collected Social Security Administration benefits of approximately $700 per month paid to an account held in the name of a deceased relative. Accordingly, MANSON fraudulently received approximately $69,000.00 in Social Security Administration benefits, to which she was not entitled.
U.S. Attorney Strasser reiterated that the Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
If convicted, MANSON faces a maximum penalty of ten (10) years imprisonment, followed by up to three (3) years of supervised release, a fine of up to $250,000.00, and a mandatory $100 special assessment.
U.S. Attorney Strasser praised the work of the Social Security Administration, Office of Inspector General. The prosecution of this case is being handled by Assistant U.S. Attorney Kathryn McHugh.
NDTX Round-Up: September 18-24Read the Press Release
SENTENCING – DOMINGO SANTIAGO CEDANO-MARTINEZ
On September 18, Domingo Santiago Cedano-Martinez, 24, was sentenced to 8 years in federal prison for possession of a controlled substance with intent to distribute. On August 8, 2019, Cedano-Martinez met with a co-conspirator at Town East Mall in Mesquite, Texas to sell 993 grams of methamphetamine. During the drug transaction, law enforcement arrested Cedano-Martinez and seized the drugs. This case was investigated by the Drug Enforcement Administration. Assistant U.S. Attorney Gregory Martin prosecuted this case.
GUILTY PLEA – BERNICE LEE WOODSON, JR.
On September 22, Bernice Lee Woodson, Jr., 35, plead guilty to possession with intent to distribute 500 grams or more of methamphetamine. DEA agents executed a search warrant at Woodson’s home in Crandall, Texas. Inside the kitchen refrigerator, agents found 289 grams of heroin. Inside the kitchen cupboard, agents found over a kilogram of methamphetamine and approximately 200 grams of cocaine, pharmaceutical pills, and marijuana. In a bedroom, agents found 7.4 kilograms of miscellaneous pills and throughout the house were seven firearms and $36,000. Woodson faces up to life in federal prison for his crimes. This case was investigated by the Drug Enforcement Administration. Assistant U.S. Attorney Suzanna Etessam is prosecuting this case.
GUILTY PLEA – LEONEL GENARO YANEZ
On September 22, Leonel Genaro Yanez, 47, plead guilty to possession with intent to distribute a methamphetamine. Yanez, an illegal immigrant from Morelia, Mexico, met an individual in Mesquite, Texas where he purchased car audio speakers which he knew contained 20 kilograms of methamphetamine. Yanez planned to distribute the narcotics to an individual who was taking the speakers to Florida. Yanez faces up to 20 years in federal prison for his crimes. This case was investigated by the Drug Enforcement Administration. Assistant U.S. Attorney Rachael Jones is prosecuting this case.
Multinational Industrial Engineering Company to Pay $22 Million to Settle False Claims Act Allegations of Evading Customs DutiesRead the Press Release
PHILADELPHIA – First Assistant United States Attorney Jennifer Arbittier Williams and Acting Assistant Attorney General Jeffrey Bossert Clark announced that Linde GmbH and its U.S. subsidiary Linde Engineering North America LLC (LENA) (together, “Linde”) have agreed to pay the United States more than $22.2 million to resolve allegations that Linde violated the False Claims Act by knowingly making false statements on customs declarations to avoid paying duties owed on the companies’ imports.
Linde GmbH is a multinational corporation headquartered in Germany that, among other things, imports materials into the United States for use in the construction of natural gas and chemical plants. LENA, based in Houston, conducted portions of Linde’s United States business and managed procurement and logistics for Linde. Between 2011 and 2017, Linde imported more than $500 million in goods into the United States.
To enter goods into the United States, an importer must declare, among other things, the country of origin of the goods, the value of the goods, whether the goods are covered by antidumping or countervailing duties, and the amount of duties owed. U.S. Customs and Border Protection (CBP) relies on these representations to determine the correct amount of any duties owed. It is the importer’s affirmative duty to use “reasonable care” to make sure that such information is accurate so that CBP can assess the proper duties.
The United States alleged that, between 2011 and 2017, Linde avoided duties owed to the United States, including in some instances antidumping and countervailing duties, by misrepresenting the nature, classification, and valuation of imported merchandise, as well as the applicability of free trade agreements.
“Trade policy is a critical part of our nation’s foreign policy,” said First Assistant U.S. Attorney Jennifer Arbittier Williams. “Anti-dumping and countervailing duties ensure that American manufacturers are protected from unfair trade practices, and valuation requirements help to ensure that importers do not have an incentive to use foreign engineers to design or inspect the equipment instead of hiring in the United States.”
“This settlement reflects our commitment to hold accountable those who evade duties owed on imported goods, including antidumping and countervailing duties that level the playing field for U.S. manufacturers,” said Acting Assistant Attorney General Jeffrey Bossert Clark for the Department of Justice’s Civil Division. “The Department of Justice will zealously pursue those who seek an unfair advantage in U.S. markets by bringing underpriced goods into this country.”
“CBP is proud to work with the Department of Justice to enforce our trade laws. Collecting revenue on behalf of the American people is something we take very seriously,” said Brenda Smith, Executive Assistant Commissioner, CBP Office of Trade. “We are glad to have come to an equitable and productive solution.”
Prior to the United States’ disclosure to Linde of its investigation, Linde initiated a voluntary disclosure to CBP regarding its importing practices. Since that time, Linde has cooperated with the investigation and worked to overhaul and improve its customs compliance program.
First Assistant U.S. Attorney Williams praised Linde’s work in addressing the issues in these programs: “We commend Linde for coming forward with these issues and working to ensure both that the government is made whole and that these issues will not recur. We hope this settlement will serve as a message to other importers to ensure that they have compliance processes in place that can detect problems before they grow. Importers have an obligation to scrutinize their practices and promptly report issues if they discover that they have not lived up to their obligations.”
The settlement with Linde resolves a lawsuit filed under the whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. The civil lawsuit was filed in the Eastern District of Pennsylvania and is captioned United States ex rel. Johnson v. Linde AG, et al., No. 17-cv-1012. As part of today’s resolution, Ms. Johnson will receive approximately $3.7 million. The qui tam complaint was filed by Stephen Hasegawa of Phillips & Cohen in San Francisco.
“We thank the relator and relator’s counsel for their contributions to this case. Without information from citizens like the relator, detecting fraud and conserving government program funds would be much more difficult,” said First Assistant U.S. Attorney Williams.
The settlement was the result of a coordinated effort among the U.S. Attorney’s Office for the Eastern District of Pennsylvania and the Commercial Litigation Branch of the Justice Department’s Civil Division, with assistance from CBP’s Office of Chief Counsel and CBP’s Regulatory Audit and Agency Advisory Services. Assistant United States Attorneys Paul W. Kaufman and Landon Y. Jones III of the Eastern District of Pennsylvania and trial attorney Jennifer Chorpening of the Civil Frauds section of the Department of Justice handled the investigation and settlement.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Multinational Industrial Engineering Company to Pay $22 Million to Settle False Claims Act Allegations Relating to Evaded Customs DutiesRead the Press Release
Linde GmbH and its U.S. subsidiary Linde Engineering North America LLC (LENA) (together, “Linde”) have agreed to pay the United States more than $22.2 million to resolve allegations that Linde violated the False Claims Act by knowingly making false statements on customs declarations to avoid paying duties owed on the companies’ imports, the Justice Department announced today.
“This settlement reflects our commitment to hold accountable those who evade duties owed on imported goods, including antidumping and countervailing duties that level the playing field for U.S. manufacturers,” said Acting Assistant Attorney General Jeffrey Bossert Clark for the Department of Justice’s Civil Division. “The Department of Justice will zealously pursue those who seek an unfair advantage in U.S. markets by bringing underpriced goods into this country.”
“Trade policy is a critical part of our nation’s economic stability and security,” said First Assistant U.S. Attorney for the Eastern District of Pennsylvania Jennifer Arbittier Williams. “Anti-dumping and countervailing duties ensure that American manufacturers are protected from unfair trade practices, and valuation requirements help to ensure that importers do not have an incentive to use foreign engineers instead of hiring in the United States.”
“U.S. Customs and Border Protection is proud to work with the Department of Justice to enforce our trade laws. Collecting revenue on behalf of the American people is something we take very seriously,” said Brenda Smith, Executive Assistant Commissioner, CBP Office of Trade. “We are glad to have come to an equitable and productive solution.”
Linde GmbH is a multinational corporation headquartered in Germany that, among other things, imports materials into the United States for use in the construction of natural gas and chemical manufacturing plants. Houston-based LENA managed procurement and logistics for Linde, which imported more than $500 million in goods into the United States between 2011 and 2017.
To enter goods into the United States, an importer must declare, among other things, the country of origin of the goods, the value of the goods, whether the goods are covered by antidumping or countervailing duties, and the amount of duties owed. U.S. Customs and Border Protection (CBP) relies on these representations to determine the correct amount of any duties owed. It is the importer’s affirmative duty to use “reasonable care” to make sure that such information is accurate so that CBP can assess the proper duties.
The United States alleged that, between 2011 and 2017, Linde avoided duties owed to the United States, including in some instances antidumping and countervailing duties, by misrepresenting the nature, classification, and valuation of imported merchandise, as well as the applicability of free trade agreements.
Prior to the United States’ disclosure to Linde of its investigation, Linde made a partial disclosure to CBP regarding its importing practices. In the settlement, the United States acknowledged Linde’s cooperation.
The settlement with Linde resolves a lawsuit filed under the whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. The civil lawsuit was filed in the Eastern District of Pennsylvania and is captioned United States ex rel. Johnson v. Linde AG, et al., No. 17-cv-1012. As part of today’s resolution, Ms. Johnson will receive approximately $3.7 million.
The settlement was the result of a coordinated effort among the U.S. Attorney’s Office for the Eastern District of Pennsylvania and the Commercial Litigation Branch of the Justice Department’s Civil Division, with assistance from CBP’s Office of Chief Counsel and CBP’s Regulatory Audit and Agency Advisory Services.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Mount Laurel, NJ Man Arrested and Charged with Almost 30 Counts of Fraud in Connection with Two Business SchemesRead the Press Release
PHILADELPHIA – First Assistant United States Attorney Jennifer Arbittier Williams announced that Michael Salerno, 51, of Mount Laurel, NJ, was arrested and charged by Indictment with twenty-three counts of wire fraud and six counts of mail fraud in connection with multiple, elaborate fraud schemes.
According to the Indictment, between September 2016 and at least November 2018, the defendant operated a series of businesses, including Black Diamond Forex, L.P., BDF Trading, L.P., Advanta Capital Markets, Inc., and Advanta FX, each of which purported to be in the business of trading foreign currencies. Using a variety of misrepresentations and omissions, Salerno induced victims to pay advance fees—up-front payments of typically more than $1,000—in order to be hired by Salerno’s company. He told the victims that, upon being hired, he would make available to them a pool of $10 million which they could trade on the foreign currency market, and take a generous cut of any profits. Each of these representations was completely false.
To make his fraudulent activities appear legitimate, Salerno held himself out as a sophisticated and successful businessman. According to the Indictment, the defendant claimed to have managed a real estate empire, a portion of which he claimed to have recently sold for $10 million to fund the currency-trading venture. He also claimed that he had been a profitable currency trader. None of this was true, either. In fact, he declared bankruptcy twice, most recently in 2015, and had been evicted multiple times from rental homes for failure to pay rent. In 2005, he pleaded guilty to federal tax charges and was sentenced to 21 months in prison. He failed to disclose any of this to the aforementioned victims before taking their money. Instead, Salerno allegedly collected more than $300,000 in advance fees and used the money for his own benefit.
The defendant’s currency-trading scheme came to a halt when this Office opened a criminal investigation and the Commodity Futures Trading Commission sought and obtained an injunction against Salerno and his businesses in 2018. However, Salerno allegedly turned immediately to a second scheme. Also according to the Indictment, between May 2018 and least December 2019, Salerno operated a company called AccuOne Financial, Inc. AccuOne purported to be in the business of assisting clients in ridding themselves of unwanted automobile leases. It also purported to offer a different set of clients, whose personal credit precluded them from obtaining an automobile lease, access to automobile leases, low interest vehicle loans, and credit repair services. But Salerno failed to do as promised, instead ripping off both sets of clients. According to the Indictment, the defendant took the unwanted vehicles from the first set of clients, made few - if any - of the required lease payments, and then gave the vehicles to the second set of clients who could not obtain their own leases, in exchange for substantial monthly fees. The predictable result of this house of cards-style scheme was that the clients who wanted to get out of their leases either continued to make monthly lease payments for cars they no longer had, or suffered substantial damage to their credit. And the clients who leased cars from AccuOne often had them repossessed without warning. As for Salerno, he netted several hundred thousand dollars from this scheme alone.
“When Salerno’s foreign currency trading scheme came crashing down around him, he very quickly moved on to an alternative way of swindling people out of their money with car leases and loans,” said First Assistant U.S. Attorney Williams. “The damage done by such corrupt financial schemes can be catastrophic to innocent people’s credit and financial security. We will continue to hold those who commit crimes like the ones alleged here accountable for their misdeeds.”
If convicted, the defendant faces a maximum possible sentence of 580 years in prison, three years supervised release, a fine of $7,250,000 and full restitution.
The case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Christopher J. Mannion
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Minneapolis Man Pleads Guilty to Arson of St. Paul Car Rental AgencyRead the Press Release
United States Attorney Erica H. MacDonald today announced the guilty plea of MATTHEW SCOTT WHITE, 32, to one count of arson. WHITE, who was arrested and charged on June, 29, 2020, entered his guilty plea today before Judge Wilhelmina M. Wright in U.S. District Court in Minneapolis, Minnesota.
According to the defendant’s guilty plea, on May 28, 2020, WHITE entered an Enterprise Rent-A-Car building located in St. Paul, Minnesota. While inside the building, WHITE and a juvenile accomplice maliciously started a fire inside a back office. WHITE fueled the fire by throwing papers and other flammable items onto the flames. On June 3, 2020, investigators with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) examined the scene and determined that the fire was caused by arson and originated from within the structure. The Enterprise Rent-A-Car was totally destroyed by the fire.
This case is the result of an investigation conducted jointly by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the FBI, the St. Paul Police Department, and the Minnesota State Fire Marshal Division.
This case is being prosecuted by Assistant U.S. Attorney Bradley M. Endicott.
Defendant Information:
MATTHEW SCOTT WHITE, 32
Minneapolis, Minn.
Convicted:
- Arson, 1 count
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Milan Resident Sentenced to 72 Months in Scheme to Defraud Amtrak, While Possessing Firearms, Explosives, and NarcoticsRead the Press Release
A Milan, Michigan resident was sentenced to 72 months in federal prison after having pleaded guilty to charges of wire fraud and aggravated identity theft in a scheme to defraud Amtrak and others, along with firearms offenses, announced United States Attorney Matthew Schneider.
Schneider was joined in the announcement by John R, Lausch, Jr., United States Attorney for the Northern District of Illinois, Special Agent in Charge Basil Demczak, Amtrak Office of Inspector General, Central Field Office Special Agent in Charge Christopher Diiorio, United States Secret Service, Chicago Field Office, and Special Agent in Charge James Deir, Bureau of Alcohol, Tobacco, Firearms and Explosives, Detroit Division.
Sentenced was Christian Newby, 32. Newby was sentenced by United States District Judge Gershwin Drain. As part of his plea agreement, Newby agreed to the entry of a $550,000 money judgment and to forfeit any and all property derived from the scheme to include a Rolex watch and other jewelry.
According to court records, from March 2018 through January 2019, Newby fraudulently obtained credit card information for more than 1100 credit card holders. Newby used the stolen credit card information to purchase Amtrak tickets online. After purchasing the tickets, Newby would then cancel the Amtrak tickets and receive vouchers for the value of those tickets from Amtrak. Newby then advertised and sold the Amtrak vouchers to unwitting buyers on eBay at a fraction of the cost. This was all done without the knowledge or consent of the true card holder. As a result of this scheme, Amtrak suffered a loss of more than $540,000.
As part of the investigation, agents executed a search warrant at Newby’s residence and recovered several improvised explosive devices, narcotics, firearms, and ammunition.
The case was investigated by Special Agent John Donnelly Amtrak-Office of the Inspector General with the assistance of the FBI, Bureau of Alcohol, Tobacco, Firearms and Explosives, the Milan Police Department and the Michigan State Police. The case was prosecuted by Assistant U.S. Attorneys Robert Jerome White, of the Eastern District of Michigan, and Melody Wells, of the Northern District of Illinois.
Maryland Couple Arrested for Selling Explosive Devices to Undercover ATF AgentRead the Press Release
WASHINGTON – Brittany Nicole Adams, 29, of Landover, MD, and Anthony Benson, Jr., 30, of Washington, D.C., have been indicted and arrested for conspiracy to distribute explosive devices and three counts of distribution of explosive devices. The charges were filed in an indictment unsealed in the U.S. District Court for the District of Columbia, announced U.S. Attorney Michael R. Sherwin and Ashan M. Benedict, Special Agent in Charge of the Washington Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
The investigation began after ATF identified advertisements on a website that offered for sale explosive devices described as “Dynamite,” and available for local pickup in Washington, D.C. An undercover agent responded to the ad and arranged to meet with the seller at a predetermined location in Washington, D.C. In June of 2020, ATF agents conducted an undercover controlled purchase of suspected explosive devices after Adams and Benson met with the undercover agent in response to communication related to the sale advertisement. At the meeting, Adams provided the undercover agent with eleven suspected illegal explosive devices in exchange for U.S. currency. Subsequently, on two additional occasions in July of 2020, Adams and Benson met with the undercover agent and again provided to the undercover agent illegal explosive devices in exchange for U.S. currency.
An indictment is merely a formal charge that a defendant has committed a violation of criminal law and is not evidence of guilt. Every defendant is presumed innocent until, and unless, proven guilty.
In announcing the charges, Acting U.S. Attorney Sherwin and Special Agent in Charge Benedict commended the work of those who investigated the case from the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Finally, they cited the efforts of those who worked on the case from the U.S. Attorney’s Office for the District of Columbia, Assistant U.S. Attorney Emory V. Cole of the Federal Major Crimes Section, Paralegal Specialist Teesha Tobias, and Legal Assistant Kate Abrey.